Gold stocks that just might be bottoming

Discussion in 'Stocks & Derivatives' started by finicky, Mar 13, 2014.

  1. finicky

    finicky Well-Known Member Silver Stacker

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    Thought I'd put up a few prospects as they occur, These aren't stocks I'd back fundamentally - in fact the first two that came up I don't much like. It's just the charts are suggesting to me that the punishment is relenting.

    Kingsgate (KCN): here I'm noticing the candles have shrunk to small ranges and the last three are showing higher closes. The volume is consistently the highest in the company's last decade yet less depression of price has occurred cf the preceding 2.5 years. The monthly MACD indicator has a positive cross from its signal line.

    [​IMG]

    Dragon Mining (DRA): this one again is making candles with small ranges. 9 months of selling has not pushed the price lower than June '13. The current lows are at the same level as the GFC low in 2008 suggesting the potential of a double bottom occurring. Missing so far is volume indicating confident buying. MACD is crossing and first divergence showing up from RSI indicator

    [​IMG]
     
  2. finicky

    finicky Well-Known Member Silver Stacker

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    Ramelius Resources (RMS): a pet hate of mine, but again range of candles shortening. There was massive volume for the negative month of June '13 yet the subsequent 9 months of trading have not pushed the price lower. Suggests that June was capitulation where the bulk of disillusioned exited out - unless even more bad news ahead? Monthly MACD crossed positive. The 10c level that could be shaping up as support was once multi-year resistance level.

    [​IMG]
     
  3. finicky

    finicky Well-Known Member Silver Stacker

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    Perseus Mining (PRU) once a stock that made traders, as distinct from investors, big profits.
    Like all these stocks mentioned, there are warnings fundamentally that a purchaser could just be buying into trouble and issues rather than a multi-bagger.

    In Feb 18 Perseus announced a placement at A$0.47 per share to raise A$32m
    During the December 2013 quarter, PRU produced 48.4koz from Edikan for an 'all-in site unit cost' of US$1,228/oz
    Loss after tax for Dec Qtr was $6,878,000
    Loss after tax for the Half Year to Dec was $4,024,000

    It's possible that this chart could break above a head and shoulders reversal pattern. The sloping neckline that I'm seeing extends from September 2013 through to currently at about 50c . Record positive volume both weekly and monthly (Feb). Divergence showed up from weekly RSI and MACD after the June trough, and weekly RSI looks strong.

    [​IMG]
     
  4. finicky

    finicky Well-Known Member Silver Stacker

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    Some recent broker ratings for Perseus Mining (PRU) - from fnarena

    PRU - UBS rates the stock as Buy
    Broker Call - February 19 2014 Perseus has completed its capital raising - $30 million at 47c ...
    PRU - Macquarie rates the stock as Outperform
    Broker Call - February 19 2014 Perseus has completed a $32m institutional placement. Despite the we...
    PRU - BA-Merrill Lynch rates the stock as Neutral
    Broker Call - February 19 2014 Perseus has completed a $32m capital raising and will use the p...
    PRU - CIMB Securities rates the stock as Add
    Broker Call - February 17 2014 Perseus Mining missed CIMB's estimate of a $2.8 m...
    PRU - UBS rates the stock as Buy
    Broker Call - February 17 2014 The interim loss was $4m compared with a profit of $8.9m in the prio...
    PRU - Macquarie rates the stock as Outperform
    Broker Call - February 17 2014 Perseus Mining's $4 million interim loss - based largely on...
    PRU - Credit Suisse rates the stock as Downgrade to Underperform from Outperform
    Broker Call - February 17 2014
     
  5. heartastack

    heartastack Well-Known Member Silver Stacker

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    My 'bottom' was certainly sore after today's trading!
     
  6. tolly_67

    tolly_67 Well-Known Member

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    I seriously thought of buying in yesterday.....I wonder how much further it is going to rise? If the tension in Ukraine eases then the recent gains could disappear.
     
  7. fiatphoney

    fiatphoney New Member

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    Those who don't know the difference between AISC and 'all-in SITE unit cost', or did not pick this up immediately, should not buy PRU. IMO

    If pog is going way up, you could throw a dart at goldies and still do well.
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    Kingsrose Mining (KRM)

    So similar to the other charts on this thread

    10 months of selling has not pushed the price lower than June '13

    We have the massive positive volume for the month of March '14 and a candlestick that wafts reversal undertones from the back of the mouth, a playfully sharp yet smooth finish.

    Since June '13 fair smattering of indecisive and classic bottoming type candles (1 hammer, 2 gravestone candlesticks)

    Monthly indicators are behaving well, and with an early cross of the MACD

    (I am not a holder and unlikely buyer of KRM, DRA, PRU, RMS. Have small ancient holding of KCN)


    KINGSROSE MINING, DECADE MONTHLY CHART
    [​IMG]
     
  9. finicky

    finicky Well-Known Member Silver Stacker

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    Alacer Gold Corp (AQG)

    Less history to go by on this one and this is a weekly period chart not monthly like the preceding.
    The momentum indicators have been positively diverging since mid 2013. The range of the candles is now consistently small. If the price can pull up before $2 and form a minor low, that would strengthen the appearance of the prior lows at $2 as a double bottom? Prior lows being June and December 2013.

    No position in AQG

    All Data Weekly
    [​IMG]
     
  10. Lunardragon

    Lunardragon Well-Known Member Silver Stacker

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    Possibly lower since at recent top, over 10m shares change over.?
     
  11. BiGs

    BiGs Active Member

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    Here are morningstar wraps of above companies.
    [imgz=http://forums.silverstackers.com/uploads/12623_kcn_advancedprofile-page-001.jpg][​IMG][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_dra_advancedprofile-page-001.jpg][​IMG][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_rms_advancedprofile-page-001.jpg][​IMG][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_pru_advancedprofile-page-001.jpg][​IMG][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_krm_advancedprofile-page-001.jpg][​IMG][/imgz] [imgz=http://forums.silverstackers.com/uploads/12623_aqg_advancedprofile-page-001.jpg][​IMG][/imgz]

    and this is page two of them all FYI.
    [imgz=http://forums.silverstackers.com/uploads/12623_kcn_advancedprofile-page-002.jpg][​IMG][/imgz]
     
  12. finicky

    finicky Well-Known Member Silver Stacker

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    Yes I'd agree that very high negative volume of 10m at March peak makes it less promising. Let's see if it pulls up to make a low around this level, that would put back a bit of confidence.
     
  13. finicky

    finicky Well-Known Member Silver Stacker

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    Check out the weekly chart of PRU these days. It fell back from where it was previously mentioned in the thread but now it is creeping back to 50c level again plus it increased the volume and put in a larger candle as it broke the sloping neckline. Don't know anything worthwhile about it fundamentally, just chart views:

    [​IMG]
     
  14. fiatphoney

    fiatphoney New Member

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    They finally got back SOME of the VAT tax Ghana gov owed them of $35m in total I believe, and a good grade discovery near existing plant.
     

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