Technical analyst Clive Maund charts a gold explorer that he believes has the "potential to take off higher suddenly on positive drill results."
Golden Ridge Resources Ltd. (GLDN:TSX.V) looks like an interesting gold–silver play here for more speculative readers. On its latest 6-month chart we can see that it appears to be in a basing pattern so far this year after losing two-thirds of its value from its early November peak due to a severe downtrend. Of particular note is the high volume surge on one day in January, due to positive drilling results, which should continue to have bullish implications going forward and appears to have put a floor under the stock, because if such results can be achieved once they can be achieved again, and very possibly bettered by later drill results. So downside is likely to be limited from here on, while upside is relatively unlimited, and will be improved if gold and silver move into a bull market in due course, as is expected. This is why Golden Ridge is viewed as a relatively attractive and low risk speculative play here.
The long-term 8-year chart shows us that Golden Ridge has traded at much higher prices in the past, but is otherwise of little use technically, because the company went into a trading halt or period of suspension during the middle part of last year, and looks like it underwent a restructuring, so that it probably bears little relation to its former self.
The conclusion is that Golden Ridge is an attractive gold–silver speculative play here, that has the potential to take off higher suddenly on positive drill results. However, buyers should be aware that it might not do anything for weeks or even months, and it should be regarded as a "sleeper" for this reason, since it is very difficult to predict exactly when it will take off higher, although January's drilling results do suggest that it could be sooner rather than later.
Golden Ridge website
Golden Ridge Resources Ltd, GLDN.V, closed at C$0.13 on 16th March 2018.
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 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.
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