AI
Tuesday, September 02, 2003 9:01:26 AM
*** Gold related post (BGO) ***
Bema Gold Corp.
Clive Maund
On 22nd June, with Bema priced at $1.30, I predicted a powerful advance for the stock and strongly recommended it in an article that appeared on various websites. It has since put in a sparkling performance, actually doubling from the low point early in June, leaving many investors in the stock wondering if the time has come to take profits. The purpose of this update is answer that question.
The good news is that the price has cleared the resistance in the area of last years’ high at around $1.90 and then forged ahead to clear the “round number” resistance at $2.00. There is some resistance at around $2.60 from highs back in 1998 but this should not prove to be a significant obstacle. For practical purposes we are now in “open country” and that means, in the right market conditions, that a vertical ascent is possible. At this point it’s worth noting that although the stock has risen fairly steeply over the past ten weeks, the advance has been steady and orderly, so that it is not grossly over-extended and close to burnout.
Keeping the aforesaid in mind, the outlook for gold itself clearly has a huge bearing on the immediate prospects for Bema stock. So we now take a brief look at the three-year chart for gold, shown above, where we can see that we are on the verge of a major breakout that should take gold to the mid-high $400’s (I have written a separate analysis of gold). Should this come to pass I believe that Bema, having now no significant overhead resistance, will simply “go vertical” – you don’t need to be a rocket scientist to figure this out, although I’m sure that a rocket scientist would be highly approving of the trajectory. In these conditions I would expect the stock to advance swiftly to about $4, maybe higher. This upside potential is clearly visible on the long-term chart shown below, on which we can see the clear breakout from the very bullish “pan and Handle” formation.
To guard against the possibility of a significant reaction, which is likely should gold break down from its triangular pattern, close stops should be set below $2.00. This was a resistance level and if support here fails, the reaction would likely be big enough to justify a hasty exit. But if gold does now break out upside, it should fly.
Clive Maund, Diploma Technical Analysis
Kaufbeuren, Germany, 29th August 2003
http://www.gold-eagle.com/editorials_03/maund082903.html
Bema Gold Corp.
Clive Maund
On 22nd June, with Bema priced at $1.30, I predicted a powerful advance for the stock and strongly recommended it in an article that appeared on various websites. It has since put in a sparkling performance, actually doubling from the low point early in June, leaving many investors in the stock wondering if the time has come to take profits. The purpose of this update is answer that question.
The good news is that the price has cleared the resistance in the area of last years’ high at around $1.90 and then forged ahead to clear the “round number” resistance at $2.00. There is some resistance at around $2.60 from highs back in 1998 but this should not prove to be a significant obstacle. For practical purposes we are now in “open country” and that means, in the right market conditions, that a vertical ascent is possible. At this point it’s worth noting that although the stock has risen fairly steeply over the past ten weeks, the advance has been steady and orderly, so that it is not grossly over-extended and close to burnout.
Keeping the aforesaid in mind, the outlook for gold itself clearly has a huge bearing on the immediate prospects for Bema stock. So we now take a brief look at the three-year chart for gold, shown above, where we can see that we are on the verge of a major breakout that should take gold to the mid-high $400’s (I have written a separate analysis of gold). Should this come to pass I believe that Bema, having now no significant overhead resistance, will simply “go vertical” – you don’t need to be a rocket scientist to figure this out, although I’m sure that a rocket scientist would be highly approving of the trajectory. In these conditions I would expect the stock to advance swiftly to about $4, maybe higher. This upside potential is clearly visible on the long-term chart shown below, on which we can see the clear breakout from the very bullish “pan and Handle” formation.
To guard against the possibility of a significant reaction, which is likely should gold break down from its triangular pattern, close stops should be set below $2.00. This was a resistance level and if support here fails, the reaction would likely be big enough to justify a hasty exit. But if gold does now break out upside, it should fly.
Clive Maund, Diploma Technical Analysis
Kaufbeuren, Germany, 29th August 2003
http://www.gold-eagle.com/editorials_03/maund082903.html
Dan 
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