RE:hey goldguy what do you think of the recent price drop? goodday
I was stopped out of my trading position and currently hold a small core in ANV.
I still have the opinion from this recent post.
https://www.stockhouse.com/companies/bullboard/anv/allied-nevada-gold-corp?postid=22740799
I was looking at weekly charts this weekend and I like the bullish bottoming formation shown in gold, GDX, and GDXJ.
The weeklies tend to show the big picture better.
Gold
https://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=2&mn=0&dy=0&id=p95873898897
GDX Producer miners
https://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=2&mn=0&dy=0&id=p46454830749
GDXJ Junior miners
https://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=2&mn=0&dy=0&id=p39299298373
However, the ANV chart looks weak in comparison.
ANV
https://stockcharts.com/h-sc/ui?s=ANV&p=W&yr=2&mn=0&dy=0&id=p47579072116
While it is tempting to bottom fish for the cheap price, I think that the SP is very vulnerable to more weakness until the POG gets above approximately 1350.
The ore grades and debt load seem to require a higher POG to move the SP.
Since the future POG is unknown, I am leaning towards waiting to see how the SP behaves if/when gold moves above 1350.
I don't see the shorts as being under pressure to cover with gold near 1300 or lower and they may add to their shorts if gold trends lower from here.
Regarding miners having good leverage to the POG, I like growing mid-tier producer NGD.
NGD
https://stockcharts.com/h-sc/ui?s=NGD&p=W&yr=2&mn=0&dy=0&id=p74631067337
Also like SBB.to
https://stockcharts.com/h-sc/ui?s=SBB.TO&p=W&yr=2&mn=0&dy=0&id=p97785856688
These miners don't have the large debt load that ANV is carrying..
I think they provide more certainty of providing good leverage on a gold rally.
And they are less susceptible to a big down move if gold moves lower.
These are just a couple of examples and other miners will provide good leverage too.
I may accumulate more ANV, but want to see how it performs on a gold rally above 1350.
goldguy