Technical standpoint From a technical standpoint we’re in a bullish descending triangle with the floor in the $6.40-$6.50-ish range. The longterm trend would dictate that there is a high probability that GCM.T should break to the upside here, and continue the uptrend.
My instincts tell me we are probably going to breakdown here and traders are going to try and stop-out a bunch of weak hands. Possibly all the way down to the $5.50 range of gold breaks at the same time. Or we could breakout here and or move sideways, while we wait on the overall sector to move up.
The upward seasonality of gold begins in July again, so with all that being said, I still foresee GCM.T trading upto the $10-$14 range by the fall if/ when Gold and silver continue this big bull move up.
Fundamentally, I don’t see how this valuation could get any cheaper again. In this environment, we should be multiples higher. The underlying commodity being gold is only 10% off all-time highs!!... And in an uptrend! GCM.T is actually a free cash flow machine. When you consider, after these GUY.T shares show up on the balance sheet we’ll have more than 1/4 of our $400C million market cap, in cash.
But the market is always right ;)
Good luck out there
The Alchemist