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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Gold ETF Breaks Out

Hi lawnbowler. Since you haven't received a response to your question yet, I think I'll take a shot at it.

ECU

Long Term: The stock is within about a three year long declining wedge formation. The higher declingng line is currently at about $1.60 with the converging lower line of the wedge at about $0.40. These patterns usually resolve themselves to the upside when it's time in a rush. This doesn't appear ready to happen until another three or four months, at the best. If this event took place sooner, I suspect that there would be meaningful resistance at, roughly, the middle ground between the rising 1000 day average and the declining 500 day average which is at $1.75. There are other considerations for making the case for much higher prices but I don't want to get ahead of myself by telling the market what might be on its mind. I prefer to watch evolving daily acctivity and interpret it as time passes.


Medium Term: The stock has pushed outside and higher of a declining channel pattern at about $0.75 or so. The rising bottoms from about $0.50 have now formed an ascending line of support at $0.79 or $0.80 now. The flat 50 day moving average has been declining and is now at about $0.86. The close at $0.87 for ECU looks inspiring. Higher up I see some resistance coming in at about $1.20 to $1.25 with $1.50 and $1.75 being minor problem areas.


Short Term: I drew a straight line from the gap lower just past mid-December from about $1.01 to $0.94 and continued it across recent minor tops in December and January to where it is now at $0.86. To me, the pattern lower of $0.69 in late December and lows in mid-January at $0.74 represent a reversal pattern with the higher straight line being a neckline of the pattern. With a last sale of $0.87 we may be witnessing a breakout in progess. If this turns out to be the case, I would suspect that the $1 area could represent some temporarty resistance but considering that recent moves approaching this level from below had never experienced anything big at the level then I would suspect we might push higher in a hurry to the 200 day average, currently, at $1.18 or so. Higher up I have drawn a parallel ascending line, creating a suspected higher channel line through two November tops and currently, this intersects at $1.50 area. So, I would guess that $1.50 is the next higher expected short term trouble area.

I concentrated on resistance areas that you were interested in but my general feeling is, just let some time pass and wait it out until the day ECU snaps higher out of its current bullish long term declining wedge formation.




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