Bullish on Great Basin Gold
Great Basin Gold Ltd., (yesterday's close $1.79), had a sharp decline from $3.73 in July, 2008, to 91 cents in October of the same year (A-B), followed by a recovery rally to the 40-week moving average (40wMA) (C). The stock then settled into a large "wedge" characterized by higher lows and lower highs (see dashed lines). The recent rise to $2.09 shows a breakout from this pattern (D) and confirms the beginning of a major up-leg.
Technical indicators including the 40-week moving average and the moving average convergence/divergence (MACD - see lower panel) confirm the bullish potential. Only a decline below about $1.65 would reverse the positive status of this stock.
Point & Figure measurements provide targets of $2.50 and $3 (40-per-cent and 68-per-cent appreciation potentials from current levels). Higher targets are visible.
Ron Meisels is a contributor to the http://www.NA-marketletter.com website. Monica Rizk is the senior technical analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary. Chart source: http://www.decisionplus.com.
- Report on Business Company Snapshot is available for:
- GREAT BASIN GOLD LTD.