Gold Miner Stock at Point of Breakout [GRG, GAC, GARWF]

Technical analyst Clive Maund charts a gold explorer and producer with projects in Argentina.

The 6-month chart for Friday’s close for Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) (Canadian market shut Monday) shown below was posted on the site before the open Tuesday, with the promise to post a fuller description with a 3-year chart later. As it turned out the sector dropped quite hard today, with the GDX (VanEck Vectors Gold Miners ETF) looking like it is breaking key support, and it was mentioned in the
Gold Market update
at the weekend that Big Money might organize a “head fake” move below clearly defined support on GDX to shake people out before a turnaround and rally, although obviously Tuesday’s action is concerning as it could lead to a sharp sector drop.


As far as Golden Arrow itself is concerned, it had a good day, closing up 2 cents, or 4%, and it looks like it is breaking out upside from the rather small Cup & Handle base shown on our 6-month chart.


Moving on to the promised 3-year chart, we see that a positive pattern has developed in Golden Arrow over a long period of time. Following a huge run-up during the first half of 2016, it reversed into a bear market, which has taken the form of a 3-arc Fan correction. An early sign of a trend change from down to up was the breakout above the second fanline and sharp advance toward the end of last year. After peaking at the start of this year, it went into a steady decline as it was forced lower by the third fanline. However, it turned up again before dropping as far as the late 2017 low, which was a bullish indication, and has recently broken out above this third fanline by virtue of moving sideways. So it looks like this bear market is done, especially as the Accum-Distrib line has been positive overall relative to the price.



Golden Arrow Resources website.


Golden Arrow Resources GRG.V, GARWF on OTC, closed at C$0.52 $0.388 on 7th August 2018.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:

1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.

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4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.


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