Gold prices continue to hold above the March uptrends, showing support above the November lows, suggests resources sector expert Omar Ayales, editor of Gold Charts R Us — and a participant in the MoneyShow Canada Premier Virtual Investor Conference on Feb. 2-4.
The debasement of currencies through continued global stimulus is here to stay — offering strong support for gold above the $1750 level. Watch for a break above $1940 to confirm support and strength that could fuel a renewed rise to $2,100.
Gold miners are still in a downtrend since last August. However, "Spinner" — our proprietary technical indicator — suggests that the downside is limited. Be patient, as better days are near.
Bonterra Resources (Vancouver: BTR) (OTC: BONXF) is showing stronger signs of support above the $1 per share level — as it rises and tests a key resistance near CA $1.35.
A break above this level will show signs of renewed strength that could push the stock to recent highs of CA $1.55 or higher. Bonterra is a great company; it is well managed with great assets — and a prime takeover asset.
Blackrock Gold (Vancouver: BRC) (OTC: BKRRF) is a similar play to Bonterra. It's a junior miner with lots of potential. BRC has been pullback back after a bullish rise above $1, up from the November lows. BRC is bullish above its deeper support at the CA $0.60 level.
NovaGold (NG) is holding about support near the $8 level. The stock is approaching its support level, but our technical indicators suggest that the downside is limited. I have a full position and would buy more below the $8.50 level.
