GBN.V Monthly Chart

One chart that has held some of my assumptions for the longest time is the monthly chart. I could not tell you at this point whether we have the absolute low, but imo, the technical low was in August, while the nominal low was in November. The nominal low in November was not the close. This was the result of looking at the weekly chart.

However, the monthly chart shows us something a little different, especially in linear scale. We have a decline of 13 months into the low of December 2008. This was the worst stock market crash for generations. It was a terrifying low, because at the time, the company was not in production and had permitting issues and also had difficulty conducting financings.

What we also see is a decline of some 13 months into the nominal low in November similar to the decline into the previous low.

The similarity between these two declines is probably due the activity in the intermarket. You sell the resource stock and buy the long-dated treasury. The bond market rallied to a high and sold off in that December 2008, and the stock rallied once the bond market routed. We are in a very similar situation at present as we were with the previous low.

I anticipate that the rally will ensue, we are, after all, in the so-called investor phase of a three phase bull market for GBN.V shares.

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-F6