Caledonia Mining Corporation (CMCL)

[srm4u]

Clearly, we have presented some compelling evidence that the gold shares have completed an important bottom. A rebound is underway and should continue well into June. However, until we see a successful retest of this low we have no way to confirm if this is the start of the next cyclical bull market. We technicans sometime feel that we can call every tick and turn of the market. We must remember that fundamentals drive markets and trends. Technicals are a context, not a catalyst. That being said, technicals lead fundamentals and reflect fundamental themes as they develop under the surface.

Positive fundamental catalysts include the likelihood of a new rate cutting cycle in China, the inevitable monetization of European debts by the ECB and the potential for a shift in Fed intentions given global economic uncertainty amid falling inflation and weak commodity prices. Our job is to weigh the technical and sentiment data in tandem with the potential positive and negative catalysts. Should these aforementioned catalysts emerge in tandem with favorable technicals, then we’ll have stronger confirmation of a new cyclical bull market. In the meantime, we continue to focus on the companies best positioned for and most likely to take advantage of the inevitable next leg up in this bull market in precious metals.

http://www.marketoracle.co.uk/Article34877.html
http://www.marketwatch.com/