Technical analyst Clive Maund charts this firm with exploration success in the Golden Triangle.
Golden Ridge Hank Project
Golden Ridge Resources Ltd. (GLDN:TSX.V), a company with a project in the Golden Triangle, is considered to be among the best in the district. Note that the seasonal speculative spikes that we are expecting in Golden Triangle stocks may not get underway until the late summer, so this is more about positioning at good prices ahead of time.
On the 6-month chart for Golden Ridge we can see that we missed the chance to zoom in and pick it up cheap at the bottom of its annual cycle in December. After hitting bottom in December it proceeded to form a Cup & Handle base and it was our observation of this pattern that prompted us to buy it in March, as it looked very close to breaking out of it, but it has since basically tracked sideways in the weeks since we bought, which didn't really surprise us as it tends to make its big gains in the late summer - fall months, and it is now becoming clear that it is evolving into the moderate uptrend shown, in which case it is a strong buy here, as it is near to the lower boundary of this uptrend, with the prospect of it soon rallying towards the top of it, especially as the pressure now seems to be coming off the sector.
A key point to make with Golden Ridge is that once speculative interest centered on drilling intensifies in the mid–late summer months, it is likely to blast out the top of this relatively mild uptrend into a potentially dramatic spike, as it has done the past two years during the late summer-fall, and just as we did early last fall we will be ready to take profits in it into strength on this speculative interest, assuming all goes to plan.
We can see the spikes of the past twp seasons on the latest 2-year chart below.
This looks like a good entry point for Golden Ridge here, with it still near to the lower boundary of its uptrend channel and looking ready to take out a line of resistance at about 13.5 – 14 cents, so we stay long and it is an immediate speculative buy here. The point at which to become concerned if it should deteriorate would be if it breaks down from the uptrend and then below support at 11.5 cents, although this is not the expected scenario.
Golden Ridge website.
Golden Ridge Resources Ltd, GLDN.V, GORIF on OTC, closed at C$0.135, $0.097 on 26th April 19.
Posted at 4.25 pm EDT on 28th April 19.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts and graphics provided by the author.
CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.