Lake Shore Gold Corporation (LSG)

[MoneyJames]

Possible Target For Gold Price Bottom

"The first thing I would like to point out is the fact that a drop to the $1000 is possible. I do not believe that it is probable, however. If it goes to $1000 level, then it is unlikely that it will go there soon, as part of this drop. It would probably take a couple of years to get there, in such a case.

What is interesting; however, is the fact that if gold does a bottom similar to 1976, it would go to around $1000. That is a 60% decline of the move from the bottom of this bull market ($250) to the top at $1920.

Note that a drop below $1000 would probably mean that the gold bull market is over.

A bottom of $1300 is the call that I am going with. It is consistent with where I think the gold market is. I believe we are close to a major rally, very similar to the 1973 and 1979 gold rally. If this is the case, then there should be a very bullish pattern present on the gold chart.

The patterns that I have highlighted in red are the most bullish patterns I know. It is not a conventional pattern like those seen with traditional technical analysis. Based on the standard dimensions of this pattern, we should get an ideal bottom at $1300. If gold does not go lower than the $1300 level, over the next couple of weeks, then this pattern could be valid. If the pattern is valid, then gold will rally like it did in 1973 and 1979.

Also, I believe that the drop below $1522 is still part of the consolidating pattern since 2011, and not a break-down of that pattern. In other words, it is similar to the 2006/2007 and 2008/2009 consolidations, but with its major low right at the end, instead of at the beginning or close to the middle.

The $1300 level also represents a 50% retracement of the move from the $680 level in 2008, to the top at $1920. This is similar to the retracement we had in 1973, before the big rally."


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Gold seems to have bottomed at $1357. Now it is up almost a hundred dollars to $1444. The LSG sell-off is unwarranted, especially given that other junior miners from Timmins (BRD, for example) have rebounded nicely from their bottoms.