June 11, 2010

John: Gold Bullion Development continues to reach new highs and consolidate in an orderly manner without enormous spikes and precipitous drops that are prevalent among the more speculative securities. This trading behavior says a lot for the strength of the fundamentals and the respect the company is receiving from the financial, investing and trading communities. The beauty is that its climb to fame has hardly started. There appears to be much, much more to come.

Looking at the chart we see this orderly climb is shown within the upsloping channel (blue lines).

The average daily volume is gradually declining and with the price climbing we should see a breakout from this channel when or if favorable exploration news is released. The price and volume chart demonstrates strength.

Looking at the indicators:

The RSI is climbing, showing increasing strength – this is bullish.

The ADX trend indicator shows the trend strength ADX (black line) is climbing, confirming the existing trend is getting stronger. This trend is bullish because the +DI (green line) is above the -DI (red line).

The CMF indicator is bullish with the histogram above zero, demonstrating that buying pressure exceeds any selling pressure.

The outlook for Gold Bullion Development remains very bullish for the forseeable future given this powerful chart and the many fundamental factors in the company’s favor.