Tag Archives: NST

Weekend Charting 5 Oct 2014 – NST, DRM, TGZ

Gold and silver price (USD) continue to have a terrible time. Time for an update:

Gold (USD)

Gold currently sitting on a significant support line at $1190. The last two occasions the price hit this area in June 2013 and Dec 2013, the price rebounded back to $1250 in a matter of a few weeks (and then onto $1420). Should $1190 fail, then I’d expect at least $1065 to be hit.
XAUUSDO_scottreevecom_6oct2014

Silver (USD)

Silver recently broke support at $18.62 and hit below $16.92 support. Silver last consolidated strongly between these two levels between Sep 2009 – Aug 2010 and between Feb and Aug 2008, so there may be a bottom at current levels and some more sideways action? If not, then I’d expect at least $14.65 to hit next support level – a major support level that goes back to April 2006.
XAGUSDO_scottreevecom_6oct2014

NST (Weekly):

NST has some buying support in the $1.20s. Should this area fail, a test of $1.09 is likely. Next couple of days will determine next direction (see short term candlesticks with wedge formed).
NST_scottreevecom_5oct2014

Close up of Daily candlestick chart:
NST_daily_scottreevecom_5oct2014

DRM (Weekly)

DRM now fallen 11 of last 12 weeks, breaking some key support lines. Technically the only real potential support area on the chart is around 40 cents when DRM last hit the area in June 2013. Hard to see on my small chart, but the last two weeks have shown some “tails” to the weekly candles indicating current buying support below 50 cents.
DRM_scottreevecom_4oct2014

TGZ (Weekly)

TGZ is a fairly illiquid gold stock. Nonetheless, weekly candlesticks create a more clear view on the areas of resistance and support. The 80 cent region has been a dominant area of resistance, whereas 55 cent has been a strong support level, and the place to watch if the current trending support line is broken.
TGZ_scottreevecom_4oct2014

Cheers
Scott

2011 Annual Tipping Results

1st_2011_shares_com_au_annual_tipping_comp

Each year, for about seven years now, I have participated in the Annual Shares.com.au Tipping Comp. These are the three stocks I selected for 2011, with the reasoning (the comp used 31/12/10 for opening prices):

posted: 2 January 2011

Always struggle to pick three.. narrowed it down to four, so DRM will have to miss out.

Three gold picks:

NST – Northern Star. NST bought the Paulson’s gold mine from IAU in mid-2010. The mine is performing above expectations. NST should be revalued. Currently has a low market cap of $116 million.

KRM – Kingrose Mining. A small gold producer in Indonesia which is has very low production costs (US$147 p/ounce). KRM should make significant profits throughout 2011 and has good exploration ground.

PIR – Papillon Resources. Small gold explorer in West Africa. Had a good run in 2010, should continue with more exploration success.

The results:
NST: + 101.3%

NST - Northern Star

KRM: - 0.7%

KRM - Kingrose Mining

PIR: - 0.9%

Papillion Resources

Overall I finished 1st out of 23 entrants, whereby I made an average gain for the three stock selections of + 33.3%.

Only one other entrant had a positive result from the three selections. This is how the group of 23 compared to the All Ords.

2011 Shares.com.au Annual Tipping Results

Interestingly, the forth pick I couldn’t include:
DRM was down only - 1.1%

In comparison:
* the Australian All Ords Index fell - 15.4% in 2011;
* physical gold (US/oz) increased by + 10.0% in 2011; and
* physical silver (US/oz) increased by - 10.4% in 2011.

The overall theme for stocks in 2011 was major volatility, a trend I expect to continue for many years to come. The Australian market, and most world stockmarkets are in a secular bear market which may last for another 10 to 15 years.

Money can be made in any market though, if you trade with discipline, by using trailing stop losses on the gains, and keeping the losses small.

Cheers
Scott