September 9, 2010
Gold has hovered between $1,250 and $1,260 an ounce so far today as it seems to have stalled, at least for now, just beneath its all-time high…the action in the CDNX is confirming that Gold is going to a new high but what could occur first is a slight pullback…as of 7:05 am Pacific time, Gold is unchanged at $1,255…any pullback in the CDNX would be healthy from a technical point of view as this market has been on fire through much of July, August, and into early September…as strong as the CDNX has been recently, we believe we’re still in the early stages of a massive move which will likely accelerate over the final quarter of the year…technically, we should also see a reversal in the CDNX 100-day SMA within about a month or so which will be a very bullish development…looking at the chart, there is clearly resistance at 1625 and huge support between 1500 and 1525…our theory is that a test of that support could occur before the next big wave to the upside and a new 52-week high…the CDNX is up 4 points in early trading to 1592…Gold Bullion Development (GBB, TSX-V) went on a rollercoaster ride yesterday (right off the bat this morning, too) that probably unsettled a few investors…par for the course, really, in the volatile junior resource market…the stock ran to a new all-time high of 79 cents yesterday and then rather abruptly crashed to 64 cents before recovering and finishing the day at 71 cents…this type of volatility is not unusual just prior to major news…some pros are likely also playing some games…our advice is stay focused on the fundamentals which tell us the LONG Bars Zone is developing consistently and impressively…a multi-million ounce deposit is in the making here, we believe, and all Gold Bullion needs to do is just keep on drilling…news will come either today or tomorrow and as we stated before, we’re hoping to see some detailed geological information which GENIVAR should have after so many months of drilling…Gold Bullion has been very volatile again this morning, hitting 73 cents at the open, dropping to 65 cents, and then running back up to 74 cents…it’s currently down 2 pennies at 69 cents…
