GBN Weekly Log Scale Chart

The weekly chart in GBN.V shows that a bottom was reached last week, with the CCI(8) achieving a low of -200, and the RSI(14) coming off 30. We are still below 50 on the RSI(14), so the chart turns bullish on a weekly basis should that occur. Another indicator that technically the bottom has been reached in prior weeks, and that a rally is in order is the weekly MACD crossover pending.

The stock can still get utterly clobbered here in an equity market rout, for example should further gross dilution occur with no salient development or production results reported. But it would be difficult to maintain that the stock price should reach a bottom when it clearly already has, technically and price-wise. The prognosis is that last week's price arbitrage in the stock is anomalous at best, and that the trend is actually still intact. (there is nothing to prevent a volatile sideways move, though the fundamentals say that the price should be well on its way to fair value.)

A couple of things to look for by the end of the month are the end of fiscal year results to be posted by Monday, August 29. Another indication that something is afoot is the final permitting by federal authority. Once permitting is in place, (which is essentially a done deal) then the company can lay some of its cards on the table with respect to mine expansion.

The recent price low is the same as the price low at the bottom of the Right Shoulder in late 2006, on what is a very large, long-term inverted head and shoulders formation.

supersize: http://www.flickr.com/photos/11747277@N07/6054610013/sizes/l/in/photostream/

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-F6