Timmins Gold Corp T.TMM

Technical Chart Update

[HonestAbe]

The Timmins stock chart is downright scary.  I reviewed again up todate and the weekly chart shows that it has now been trading in a downtrend since fall 2012 that has accelerated into a steep parabolic downmove in just the past several months.  This explains why the downtrend resistance line angles have been increasing.

Anyways, as I mentioned in a previous post, the downmove in gold has reached the $1260's and there should be some temporary support here.  And also the call for low C$1.20's in Timmins has also come to fruition.  It is scary and nerve wracking but I think you gotta purchase some here on what appears to be capitulation by some funds and play the probable bounce in the near term.  The bounce upside can go up to high $1.50's even $1.60.  Just wait for that one or two day sudden explosive snap back rally and you can exit out some of your position.

But I would caution about loading up the truck because this is a parabolic downmove presently and it can easily spike past rational support levels at least temporarily.  As an example, if it indeed rallies back to say $1.60 I could just as easily see it quickly breaking down again to $1 with the reason being tax loss liquidation of all gold mining stocks as another poster alluded to.

[Hawk8011]

Interesting comments. The new proposed mining tax in Mexico is also a huge reason to the sell-off in all miners in mexico. https://www.economist.com/news/americas/21588891-new-royalty-rattles-investors-sovereign-take If this goes through, profits are whacked dramatically. It looks to have been priced in somewhat, but just how much further do we have to go. The cash-flow TMM spits off is enormous,