Technical analyst Clive Maunds charts a gold
explorer that made a high-grade discovery this summer.
I have been asked to comment on Great Bear
Resources Ltd. (GBR:TSX.V) following its high grade gold discovery at Red
Lake in Ontario. Great Bear rocketed higher in August on positive drilling
results, about tripling in price, as we can see on its latest 6-month chart
below.
The move was powerfully bullish as it was accompanied by a large gap and
huge volume. Because of this, the pattern that has formed over the past six
weeks is regarded as a consolidation, not a top, although superficially it
looks like a small Head-and-Shoulders top, it is instead thought to be a bull
Flag/Pennant. This view is given credence by the bullish dieback in volume as
the pattern has formed, and with the MACD having largely neutralized and the
50-day moving average catching up with the price, there is gas in the tank
for another big move.
Another big upleg is therefore considered to be imminent, as the
consolidation is mature, and the stock is rated an immediate speculative buy
as a momentum play, since the huge volume and big gap on the initial run-up
imply that it has considerably further to go before it's done. Place a stop
at C$1.58 or get out if this level is hit in case this interpretation is
wrong. The stock trades in good volumes on the US OTC market and there are a
reasonable 34 million shares in issue.
Great Bear Resources website.
Great Bear Resources Ltd, GBR.V, GTBDF on OTC, closed at C$1.88, $1.41 on
3rd October 2018.
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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares
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Charts 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
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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
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