Rainbow Resources (RBW, TSX-V) gave investors plenty to cheer about over the the long holiday weekend with very positive news yesterday morning regarding its International Silver Property, plus the announcement the company has closed a $1.1 million financing – the timing of which speaks volumes, in our view, about how things are progressing on the ground at the International where Rainbow is drilling for a near-surface, high-grade deposit. We’ll have more on Rainbow in an article Monday.
Technically, RBW is ideally positioned for a major breakout through the 25 cent resistance area – the PP is likely what was holding RBW back over the last week or so. The Rainbow chart looks extremely bullish, so it’s no surprise this stock is drawing attention from the likes of Clive Maund, Jeb Handwerger and others. Below is John’s updated technical interpretation of what could be in store for RBW as early as next week.
After climbing as high as $2 last Monday on more spectacular drill results from the Dominican Republic, GoldQuest Mining (GQC, TSX-V) pulled back in what was simply a very normal and healthy correction of about 30% (keep in mind, the stock also retreated 40% in June). GQC regained strength Friday, jumping 14 cents to close at $1.56. We expect another strong month for GoldQuest in September, and don’t forget that Big Daddy is on his way – the heavy rig that can handle much deeper drilling at Romero. Below is an updated 3-month daily chart from John that shows the recently overbought condition has been cleansed.
Note: John holds a share position in RBW while Jon holds share positions in both RBW and GQC.
Jon – Bert, you’re a smart dude!
Bert- After some mind searching, i feel the above noted words smack
of being, mildly sarcastic, Having stated that i felt someone was selling
to take down part of the private placement, should not have been worthy
of being classed as a smart dude & may i add, dude means, an old fashioned
dandy. I feel even the smartest of writers do go astray at times. Anyway, i
will never know if the intent was there, but i have put it forward & more
than likely, you will deny it. I will though, take it for granted that i am
correct, & will state, i forgive you Jon, being the forgiving DANDY that i
am. R !
Comment by Bert — September 2, 2012 @ 7:27 am
RBW… BMR and all of us expect a major break through…. GQC… if volume is there, it should be in $1.6 – $1.7 range.
Comment by Theodore — September 2, 2012 @ 10:39 am
Found this on stock house regarding RBW;
RBW Resource World ad in Sept issue
stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31476662&l=0&r=0&s=RBW&t=LIST
Comment by Tony T. — September 2, 2012 @ 3:19 pm