Gold Fakeout or Breakdown?

A lot of gold miners are near support or have broken support. Below are a list of stocks that are worth putting on a buy list. I still think there could be one more flush lower when the Federal Reserve announces its taper. As I understand Powell's convoluted language, they will announce that they will later announce a taper, followed by announcing the actual taper date, followed by the start of the taper. Maybe the first two of those will be combined, but I don't expect that. What I do expect is a repeat of the taper tantrum. Last time, rates increase from the tantrum in May 2013 until the start in January 2014. China almost immediately hit a slowdown that would culminate in yuan depreciation and a final bottom for commodities in Januray 2016, led by gold bottom in December 2015. I'm not sure the economy can handle a 2-year slowdown at this time though. The question for a gold investor is whether the Federal Reserve reverses course sooner rather than later. There's still a long way to the bottom if the Fed unleashes another deflationary wave, but how long will it last? Have a buy list ready for whatever assets you would buy in a panic drop or a short, brutal correction similar to October to December drop in 2018.

Added Roscan

Finally opened a position in Roscan, one of the stocks I waited to add after missing the run. There is hard support around 33 cents, but I sense the bottom may be in for gold mining shares and gold. Relatedly, I have calls on TLT.

Roscan Breaks Out

Clean breakout on Roscan if it holds.

Cancan

Back in November I posted The Hits Keep on Coming. Two of the stocks mentioned reported more great hits.

Benchmark Drills 1.66 G/T Gold Equivalent Over 186.00 Metres Extending Depth And Continuity Of The Mineralizing System At Cliff Creek South

Roscan Gold Discovers New High-Grade Zone 150m West of Mankouke South Intersecting 4.78gpt over 24m Near Surface. Extends Vertical Depth to 220m at Mankouke South and Intersects 2.36gpt over 30m in Fresh Rock

I don't own either of these yet, but they have been near the top of my buy list.

Roscan Moving

Big volume on Roscan today. I discussed their drill results and posted charts a couple of days ago. Could be a runner in the making.

The Hits Keep on Coming

Several companies announced good news today in the middle of the covid-vaccine news sell-off in gold. I'm only posting charts and news with some commetnary, no hard recommendations. I did own KRR when it was RNX. Of the four, I think MEX has the least coverage. The others are well followed. As for the news itself, the Roscan and Mexican Gold hits are great. Those are high grades over a long stretch. A shorthand way to look at this is to multiply the intersect by the grade, so Roscan has a 172 and a 143. Mexican Gold's hits are also above 100.

Roscan Gold Makes New Discovery at Moussala North - Intersects 5.39gpt over 32m from Surface including 8.93gpt over 16m

Mexican Gold Intersects 32m of 4.56 g/t AuEq and 10m of 10.98 g/t AuEq at El Dorado

From Don Durrett of GoldStockData.com, here's the shorthand calculation:

Benchmark is understandably excited about this strike that scores a 384.

RETRANSMISSION: Benchmark Drills 128.10 Metres of 3.02 g/t Gold Equivalent and Substantially Expands the Cliff Creek South Area

Karora didn't have a huge strike, but they're moving towards production. Any hit they make that is economic and minable increases the value of the company, unlike a discovery company that needs a really great find to get the financing to build a mine.

Karora Provides Update on 2020 Drilling Program and Announces New Regional Mining Strategy for Higginsville Area

Brief comments on the charts: Slope updates the Canadian stocks at end of day. BNCH is below resistance today so that is a failed breakout for now, but the pattern still looks good. KRR has a monster base waiting to complete. For traders, MEX gets interesting when it breaks resistance at 15 cents and takes out the old high at 17 cents, completing an inverse H&S that has a target at 31 cents. This is a much earlier play chart wise and the chart isn't bullish yet from an intermediate or long-term view. ROS had a nice breakout and has successfully tested. Looks like a good low risk entry for a trader. If you force me to make a call, I'd say the volatility in BNCH and the great hit in ROS, plus their charts, makes them most likely to move first. I think KRR and MEX will take longer, but I haven't researched these lately. Any fundamental developments or news could accelerate things. Do your research.

Update: I like the risk/reward on the MEX warrants and I'm willing to wait.