Granada Gold Mine Inc. V.GGM

NEW BMR chart update. Looks amazing.

[TommBomb]

December 18, 2010
Gold Bullion Development Updated Chart: Powerful Year-End Finish Possible For GBB
John: On Friday, Gold Bullion Development (GBB, TSX-V) opened at 77 cents, dropped to a low of 75 cents and then surged to a new all-time high of 83 cents. It closed at 81 cents for a gain of 4 pennies on CDNX volume of 1.1 million shares. GBB’s chart patterns are very bullish as outlined below, so there’s a decent chance this stock could close the year in powerful fashion.

Looking at the 6-month daily chart, we see that on Friday GBB broke to the upside to a new high of 83 cents without meeting much resistance at the old high from September of 79 cents. On Thursday it made a breakthrough as it surged through a main resistance level at 74 cents on nearly 2 million CDNX shares. The previous 74 and 79 cent resistance levels now provide strong support (green horizontal lines).
If we consider the chart pattern between Sept. 8 and December 8 a “Cup with Handle”, with the breakout from the handle Dec.9, we can expect the next resistance level to be 95 cents (top level of cup + depth of cup = 75 cents + 20 cents = 95 cents) which agrees well with the Fibonacci target of 97 cents (this is not a BMR price target as we don’t give price targets but a theoretical Fibonacci target based on technical analysis as a guide for investors). The EMA(20) provides close bullish support.
It is also important to note there has been a significant increase in volume over the last 3 trading sessions.
Looking at the indicators:
The RSI is rising and now stands at 73% – bullish.
The ADX trend indicator has the +DI (green line) rising at 36 and above the -DI (red line) which is falling at 12. The ADX (black line) trend strength indicator is at 30 and increasing. The vertical thin green line shows where the +DI crossed above the -DI. This is where the bullish uptrend began. The orientation of ADX, +DI and -DI is very bullish.
Since November 8 there has been a continuous increase in buying pressure (upsloping mauve line) with Friday’s Chaikin Money Flow (CMF) indicator closing at .378. It is very unusual to have such a long continuous increase and this is very bullish.
Outlook: The chart patterns and indicators are very bullish for GBB and suggest the stock could aggressively continue its climb toward the next Fibonacci target of 97 cents.
Note: The writer holds a position in GBB.