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Gunnison Copper Corp V.GCU


Primary Symbol: T.GCU Alternate Symbol(s):  GCUMF

Gunnison Copper Corp., formerly Excelsior Mining Corp., is a copper development company. The Company operates in Cochise County, Arizona, and is focused on delivering pure copper cathode into the United States domestic supply chain. The Company’s projects include Gunnison Copper Project, the Johnson Camp Mine, and a portfolio of exploration projects, including the Peabody Sill and the Strong and Harris deposits, in Cochise County, Arizona. The Strong and Harris copper-zinc-silver deposit is located just 1.3 miles (2.4 kilometers) north of Gunnison Copper’s Johnson Camp SX-EW facility. The Gunnison Project which incorporates a large open pit of predominantly copper oxide mineralization approximately two kilometers south of Johnson Camp Mine (JCM). The Project is a copper cathode and is designed to produce around 167 million pounds of copper cathode annually.


TSX:GCU - Post by User

Post by LoneStar1on Apr 18, 2015 2:56pm
248 Views
Post# 23643590

Gecko Research

Gecko Research

Don't know who these guys are but they really like GCU. Maybe, finally the sentiment is turning in our favour for the reasons listed below.

Why Gold Canyon is a keeper and should be held on to

On April 10th we posted a short piece containing some technical analysis on GCU (Is Gold Canyon getting ready for a breakout?). Although technical analysis is useful to us, it's not 100% reliable. This time it was though and we have just seen GCU breaking out on good volume. The stock gained 11% on Friday alone with more than 700,000 shares traded. Readers who bought on our Feb 25th investment idea are now enjoying a 47% gain.

Under normal circumstances we would be taking profits and start to trade a stock like GCU, but we won't. Here are some reasons why:
1) M&A activity is strong and if we see other juniors taken out, that will increase the interest for GCU even more
2) Rumors of a possible take-over are still intense (consider that Gold Canyon’s Springpole deposit is one of the largest undeveloped gold resources in Canada in the hands of a junior)
3) We find the stock greatly undervalued
4) GCU can be thinly traded from time to time and to get back in could turn out to be a difficult task
5) The chart looks like a dream from a technical perspective

The chart above is self-explanatory but we'll say a few words for those that are not so familiar looking at charts. A (positive) Golden Cross is when a shorter term moving average (MA50) is crossing the longer term moving average (MA200) to the upside. As you can see in the chart above, that is about to happen soon and is considered to be a very bullish sign as it confirms a new trend. There is a saying, "Let the trend be your friend", and this is very true for Gold Canyon. We can see that the stock has created an almost perfect V-shaped bottom and with a new up-trend being confirmed soon, we are holding on to our shares.

Even if "Golden crosses" aren't 100% predictable to determine future price moves, it's loved by many and seen as very bullish. The same is true for the "negative" golden cross as we point out in red which happened around Oct 1st, 2014.

(Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is “likely” to happen to prices over time.)

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