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Posts Tagged ‘uxg u.s. gold new 52 week highs’

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Fear of Deflation, A Weak Economy and Bad Global Debts

In Stock Movers on June 20, 2010 at 3:30 pm

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Copper is an extremely useful indicator which shows the strength of the global economy and whether the economy is growing or decreasing. At the moment Copper is flashing a “red alert!” A very bearish crossover pattern means that copper could go lower for many months.

This pattern is taking place with a broken trend, weakening rsi and momentum. All these signals together makes the chance of a fakeout, bear trap or whipsaw less probable. Next target is $250 which is the 50% retracement.

The bearish copper pattern is taking place at the same time as an extremely bullish cup and handle breakout on gold. Many investors are finding gold and silver a better place to be right now rather than equities or commodities that are more susceptible to a weak economy.

I especially like silver here and have recommended UXG U.S. Gold which has made a huge discovery in Mexico. UXG is one of the leading stocks in the market right now up a 108% in the last 6 months. Although it is extended and I do believe there will be a pullback I am still extremely bullish on this company. In the next couple of weeks more news will be coming out summarizing the massive amount of work UXG is doing in Mexico.

Silver is going to follow gold and breakout into new highs and when that breakout is done a huge move could follow according to my point and figure charting. As you can tell by this chart that as the global economy is in danger people are buying silver. This is a sign of deflation, when the general public hoard silver and gold rather than being exposed to debt.

Silver is making a long term ascending triangle which is a bullish pattern and hasn’t violated any trend lines or moving averages. I predict silver on this next breakout could catch up with gold.

In a real economic crisis silver is a much more practical item as an alternative currency as it is much cheaper. A middle class person could easily cash in some dollars to by a roll of silver dollars verse buying gold coins.

The market is also predicting that interest rates are going to stay low as central banks fight deflation and hoarding of precious metals. This is illustrated by the move in utilities to reverse the bearish crossover signal. This signal is usually bearish unless there is a significant reversal close to the crossover.

Utilities is a sector which is extremely sensitive to higher interest rates. When this sector rallies it usually predicts low interest rates. The fear of bad debt globally and deflation is causing a rush to gold and silver and an easing from central banks.

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U.S. Gold Making Major Gains, 90% Gain From Original Recommendation

In Stock Movers on June 17, 2010 at 9:10 pm

U.S. Gold (UXG) continues to be one of the best stocks in the overall market completely bucking the previous correction.  Please read my previous post from last week where I highlight the 4 major reasons this stock is moving and why I believe it will continue higher.  Click here for previous post.

We will have pullbacks but the next target for UXG is pre crash highs of $7.  UXG is leading the precious metals market as it is at the top of the list in performance over the past 6 months.

Best Performing Stocks
Symbol Company Name Percent Change Chart
RVS Riverstone Resources Inc. 114.81%
GMO General Moly, Inc. 84.34%
APLL Apolo Gold and Energy Inc 81.82%
UXG US Gold Corporation 79.27%
FRG Fronteer Gold Inc. 70.54%
BCLE Bio Clean International In… 50.00%
ANV Allied Nevada Gold Corp. 47.70%
RIC Richmont Mines Inc. 36.37%
DPM Dundee Precious Metals Inc… 34.37%
SA Seabridge Gold Inc. 34.19%

Notice two of our recommendations are up there General Moly and U.S. Gold.  New Gold would be up there as well with a 90 % gain but for some reason bigcharts doesn’t classify it as a gold stock.  Taseko is up close to 200% gain for the past year.

Since 2001 I have used technical analysis and specifically relative strength to focus on tomorrow’s leaders in the mining sector.  Having a discipline and following strength in a sector that is filled with shameless promotion is key to making gains.  Fundamentals analysis alone will not achieve the same investment return.

Here is a chart from our recommendation point of 6/2/09.

Subscribers have close to a 90% gain and I appreciate all the subscribers who waited patiently through the correction where we gave back a 45% gain.  I believe in holding on to winners.  Stocks that I recommend have potential to make huge gains, but one has to patient as stocks correct and create another base before blasting into new high territory as in the case of UXG.

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Buy U.S. Gold (UXG) Price Moving Higher After Cup and Handle Breakout

In Stock Movers on June 10, 2010 at 4:22 pm

The cup and handle breakout is a classic pattern which stock market traders search for constantly. A cup and handle pattern means that the stock has made a consolidation where many of the weaker holders sell their shares. Then as the stock breaks into new highs a handle is formed. It is formed because many investors who bought at the previous high are now trying to get back the capital that was initially invested at the previous high. Then a handle is formed. A handle should move sideways or slightly down so investors who bought at the previous high can get back their capital. Once this handle is completed the stock has very little selling pressure and buyers now gain control and push the stock into new highs. Many times the percentage gains are impressive.

Sometimes a stock forms a triangular pennant after a breakout as in the case of U.S. Gold (UXG). These triangular pattern in a handle are bullish and provide investors an opportunity to get in before a major run.

My ideal buy point is after the breakout of the cup when the handle pulls back to key support.  Right now is a good opportunity to add shares before a breakout at $4.31.

There are four upcoming events that could make this stock move.

1) 20 drilled hole results from El Gallo in 2 weeks.

2) El Gallo Initial Resource Estimate in 4 weeks.

3)Additional Results From Regional Exploration in 6 weeks.

4)El Gallo Economic Assessment by year end.

I am excited by the results coming out in mid July from the regional exploration.  UXG invested a lot into Mexico this year knowing that this land package could contain a massive amount of silver.  I am excited for the next few weeks both from a technical and fundamental perspective.

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U.S. Gold Leading Junior Miners, Drilling New Areas

In Stock Movers on June 3, 2010 at 12:25 am

U.S. Gold (UXG) is one mining company where the CEO puts his money where his mouth is.  Rob Mcewen believes UXG will be on the SP500 and his aggressive drilling in Mexico is proving to the investment community that he has a major mine there.  Rob owns 21% of the shares much more than any other CEO in the business.

The chart shows that in the past 6 months UXG has been outperforming gold.  It is showing great relative strength.  I believe it will continue to do so as new areas in Mexico start drilling in June and he is continuing to show expanded mineralization.  Expect more positive results and outperformance of UXG especially how active they are drilling.

Chart shows a strong breakout on good volume and now it is making a bullish continuation wedge.  Look for an upside breakout.