Possible Setup
posted on
Apr 09, 2009 06:27PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
My 3.3 cents worth is a rally is imminent off of what is coming in the way of the Hinge 43101, a 10,000 ton bulk sample, a TSX listing and a major technical upleg.
From a technical and trading stand point, we just came off a sustained move which lasted from 57 cents on October 24 to 1.96/2.01 on April 1 which was exactly 9 months from the last high or about 270 days.
If we use 270 days between highs, the bisect time horizon for the low would be about 5/8 of 270, or 169 days.
That would be October 24th plus 169 days. Today is day 167.
In order for a rally to occur that would produce a multiple of the .57/2.01 move, technical indicators would be best set up in the ovesold position which is where we are headed fast. 6 consecutive down days in a row will do that.
1.41 is major support on a number of levels. Not only is it the 200 dma, it is also a major fib level and what could possibly be the 'double' of the 'double bottom' set up that occurs on or around day 169 and seeing as how the markets are closed until Monday, we will have to wait until day 171. Anything between 1.38 and 1.50 on Monday wouldn't surprise me with a nice big hammer to close out the trading.
Technicals aside, there are far too many fundamental and material facts soon to be released that the down side is nil and given the fact that we're producing what could possibly be the only substitute or complimentary defacto insurance contract against either deflation, inflation or default makes this gold mine much more delicate and intriguing than most realize.
3 years ago, if you would have told me that technicals had anything to do with this company I would have sent you a subscription to High Times but it has become so apparent that the desk jockeys are working this thing that you can bet someone already has the SGR chart hanging on their wall plotted out to at least 2010
My guess is that wall is somewhere down on Adelaide Street, East.