Gold is soft this morning, breaking below technical support at $1,185 an ounce…as of 7:30 am Pacific time, Gold is down $12 an ounce to $1,181…a major level of support is around the 200-day moving average at $1,160…within a month or so Gold will be entering a period of seasonal strength…the CDNX is off 10 points to 1369…chart patterns in 2010 for the CDNX are very similar to those of 2004 when the market bottomed in July and rose 26% by the end of the year…some further choppiness in the CDNX can be expected through the end of the month including a possible test of the recent 1343 low…if the 2004 pattern repeats, however, the sell-off since early May has largely exhausted itself and the Index will hold at 1300 or better…Gold Bullion Development (GBB, TSX-V) is unchanged at 50 cents on relatively low volume this morning…Sidon International, which we’re also watching very closely, is down half a penny at 9.5 cents…Sidon got technically overbought, based on RSI and Stochastics, in last week’s 66% advance and is likely to consolidate for at least a short period to allow that overbought condition to cleanse itself…Fire River Gold (FAU, TSX-V), which we mentioned here a few weeks ago at 55 cents, is trading at 71 cents this morning, down a penny…Fire River is in the process of completing a financing…we see positive things in store for this company through the balance of the summer and fall as it drills and develops its Nixon Fork Gold Project in Alaska…
July 19, 2010
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