Price movement has been a steady growth since July after that huge lost late June. I've stayed away from it because of that drop and even when I got a 5/20 Golden Cross signal on it July 22nd, I still ignored it. I thought it might just be doing a Dead Cat Bounce on me. But it is continued onwards and of course it slipped my mind to continue watching it. A pop and a drop in August and another one early September and both drops fell back to the lower trend line without breaking it. This is showing strong support at this trend line.

What is to note here is the yellow horizontal line, the next resistance level. Twice it has failed to break it. As we get closer to the apex of this line and the lower trend line moving upwards, pressure is building and I believe if gold continues to move up, we will have a coil effect and it will break that resistance line with a bang. The down side of this play is that if it fails to break resistance shortly, it will crumble having formed a Triple Top pattern and return to its lower support level at $6.81.

So the play here is to hope it breaks resistance and run to its next resistance line at $8.30 for gains of 10.3% and should take no more than 10 days to get there. Out stop loss on this play would be the lower trend line itself. Don't let the price fall below this. Of note if the overhead 200SMA line which continues to come down. This could pose some resistance as the stock price nears it.

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Two main reasons why I have picked this stock as a potential.

1) Gold setting new record highs with a close today at $1309 USD

2) The stock is bouncing off the trend line.