BullMarketRun.ca

Gold got as high as $1,209 overnight but has reversed to the downside…as of 7:45 am Pacific time, Gold is off $15 an ounce to $1,189…Gold continues to be supported by rising 30, 60, 100 and 200-day moving averages but further immediate downside risk clearly exists as some technical damage has occurred over the last week…the CDNX is flat at 1361…Gold Bullion Development (GBB, TSX-V) traded nearly 1.2 million shares in the first half hour this morning with a range of 48.5 to 54 cents…despite the drop from a high of 71 cents to a low of 43.5 cents over 7 trading sessions, Gold Bullion’s rising 20-day SMA remains intact (though it has flattened out) as it has since its big move began March 1…the rising 50-day SMA at 48 cents is also providing very strong support…fundamentally, as we have stated many times here before, the possibility of a multi-million ounce discovery in the LONG Bars Zone is very real…our site visit last month and the information we obtained from the Quebec Ministry of Mines on the Granada Eastern Extension (including maps that clearly outline the strike of the rock for several kilometres) confirmed in our view the incredible blue sky potential of the LONG Bars Zone particularly going east…while the nearly 40% pullback in the stock price was frightening to some, our view is that this was a normal and healthy correction within an ongoing bull market in this stock – in otherwords, a great accumulation opportunity…the drill bit of course will ultimately dictate where GBB is going but at 50 cents the upside potential certainly exceeds the downside risk…Seafield Resources (SFF, TSX-V) is unchanged at 18 cents…we’ll be posting an updated chart on SFF later today and BMR has also confirmed an interview with President and CEO Tony Roodenburg next Wednesday…it’s not often that Roodenburg grants interviews so we look forward to the opportunity…