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A technical outlook for New Gold, Oceanagold and B2Gold

Cory
October 7, 2016

To kick off today with Rick we take a look at gold and some mid to large cap gold companies. We wanted to get Rick’s outlook on the underlying metal after the technical damage that has been done this week. He has some lower targets that he thinks would still have a bullish outlook for the metal.

Here are the charts we look at:

  • Oceanagold – OCANF & TSX: OGC,
  • New Gold – NGD  & TSX:NGD,
  • B2Gold – BTG & TSX: BTO,
  • Gold,

Click here to visit Rick’s site for more info on his proprietary technical’s.

Click download link to listen on this device: Download Show

Discussion
80 Comments
    CFS
    Oct 07, 2016 07:17 AM
    Oct 07, 2016 07:18 AM

    who dumped $2 billion gold in 1 minute?

    chartster was it you? hoping to get gold down to your $500 target

    CFS
    Oct 07, 2016 07:20 AM
    b
    Oct 07, 2016 07:34 AM

    Pot shares had profit taking yesterday, but we are on our way back up again today.
    Im sure glad I decided to park in potshares instead of cash for awhile.

    Especially with medical research really beginning to come out in the open.
    Not that it hasnt always been available its just few people bothered to look,
    only dopes smoke dope and all.

    Hard to find a better example of herdthink.

    According to Bob M 1150 – 1200 might be the time to move back into gold, his last interview actually focused on silver price more. Came across that way to me anyway. 16 I think he said.
    So, maybe whatever gold is when silver hits 16.

    Oct 07, 2016 07:52 AM

    SLV reversed at the 200 day MA – to the penny:

    http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=13&id=p81097637193

    Oct 07, 2016 07:54 AM

    Impact Silver also turned at the 200 day MA after briefly poking through it:

    http://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=0&dy=13&id=p74656706541

      Oct 07, 2016 07:05 AM

      Thanks Matthew. I wrote you back clarification and thank you regarding Impact on yesterday’s market wrap. Cheers!

    Oct 07, 2016 07:55 AM

    Americas Silver has still not reached the 200 dMA:

    http://stockcharts.com/h-sc/ui?s=USA.TO&p=D&yr=1&mn=0&dy=13&id=p70113310368

      Oct 07, 2016 07:07 AM

      Good ole Americas Silver has sold off more than expected, and even though I’ve got a free ride, I’ve added a bit today and will likely buy even more next week.

        Oct 07, 2016 07:41 AM

        I already took profit on Impact and bought Americas today. Wack- a- mole form the other side.

          Oct 07, 2016 07:48 AM

          Nice Dan. I was considering doing the same, but want to hang on to the larger position I have in Impact, so I just added to Americas. I added to Avino, Brixoton, and Aurcana earlier in the week (but Brixton has sold off a bit more, so I may add more to it). I’m trying to get started with Bayhorse Silver and that stock has barely pulled back as much as I was hoping for.

            Oct 07, 2016 07:49 AM

            Alexco has had a nice rout so I may add some more there as well.

            Oct 07, 2016 07:56 AM

            I’m also sitting on a nice position of Cyprium Mining shares waiting for a news update on how their ramp up into commercial Silver production is going. They are now the new kid on the block in the Small Silver producer sub-sector. Nobody seems to have even noticed, but if they continue to ramp up production when the metals start recovering, then I would be surprised if it doesn’t get re-rated in a whole new light. There isn’t much data yet on what their actual costs have been or how much they have produced, but once that is out it will help clarify expectations for next year.

            Oct 07, 2016 07:07 PM

            I just checked and it just went down 27%. Ouch – that hurts. 🙁

            There doesn’t seem to be any news out that would have caused the selloff, but maybe I’ll check it out on Tuesday or Wednesday to see how it looks. I may have to pick up some more.

            Oct 07, 2016 07:12 PM

            The main ticker (CUG) has been flat all day, so it must have just been the OTC correcting to the mean since it didn’t have heavy trading earlier in the week hand not done it’s correction yet. Now it has…..

            Oct 07, 2016 07:41 PM

            Luckily Silver Bear Resources (SVBRF) was up over 26% today and was the #1 Performing Silver stock on the OTC to make me feel a little better. Most my other Silver stocks were up double digits today (see Dirty Dozen Silver Stocks below).

        Oct 07, 2016 07:21 PM

        Losses Mount in Metals as Silver Suffers Worst Week Since 2013
        Eddie Van Der Walt – Ranjeetha Pakiam
        October 6, 2016

        http://www.bloomberg.com/news/articles/2016-10-07/gold-set-for-biggest-weekly-loss-this-year-before-u-s-payrolls

    Oct 07, 2016 07:59 AM

    It is not a severe pullback. Gold rallied 30% and is not even having a 10% pullback. Things do not go straight up.
    Sentiment got way too bullish. Most of these mining shares are up 200 – 400%!
    This interview makes it sound like this gold rally is now a bear market rally. Which is it?
    Gold did what it should have, poked under 1250. If you go much lower, things must be reassessed. I would be more inclined to purchase metals here rather than looking lower.

    I would not be so quick to say NGD gave up the 200DMA. It closed a couple of pennies below and is trading at the 200DMA, so it is showing support.

    Today the COT data on gold will come out and they will decide next week whether to hit it or buy it based on sentiment.

      Oct 07, 2016 07:06 AM

      +1
      Gold is sitting just below the 200 day MA at the moment:

      http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=0&dy=13&id=p96569994666

        Oct 07, 2016 07:16 AM

        Thanks.
        Ahh, let it poke under for a day or two to really scare people! That will flush out all of the nervous nellies 😉

          Oct 07, 2016 07:59 PM

          In the spirit of the season …

          200 DMA says ” BOOOOO !!!! “

            Oct 07, 2016 07:12 PM

            Spooktacular!!

        Oct 07, 2016 07:25 PM

        Matthew,
        I saw below you had a $1,245 target on the gold. That was you, right? If so, nice! Congrats.

      Oct 07, 2016 07:37 AM

      IRich,
      it looks like New Gold is at least a two baggar within 12 months from here. So what if there is another 8-10% drop. Good assets, good management and safe locals.

        Oct 07, 2016 07:13 PM

        Thanks.
        I am not fond of the price action here. I would expect a bounce around 3.70, but that has the potential to fail and go lower. Let’s see what 3.70 can support.

    Oct 07, 2016 07:01 AM

    Jaguar Mining is a picture of strength so it could be a very long time before it is has a meeting with the 200 dMA:

    http://stockcharts.com/h-sc/ui?s=JAG.TO&p=D&yr=1&mn=0&dy=13&id=p60137713617

      Oct 07, 2016 07:13 AM

      Yep looks like a bullish pennant pattern about to break out to the upside. Where is Morriss Hubbartt at time like these to narrate? 🙂

        Oct 07, 2016 07:18 AM

        Ah…… he’s already got his weekend special posted on 321gold….

        WARNING: Morris is not a “Professional” analyst, and thus investors should realize he has a paid subscription service. He also may at times Pump or Tout stocks that he follows and based on his interpretation of technical analysis and his own biases.
        (hopefully that is an acceptable disclaimer for all and keeps the peace)

        Gold Stocks Meltdown: Key Tactics

        Morris Hubbartt
        Super Force Precious Metals Video Analysis
        posted Oct 7, 2016

        (Click on the Blue links for the various embedded TECHNICAL ANALYSIS VIDEOES)

        http://www.321gold.com/editorials/sfs/hubbartt100716.html

        Oct 07, 2016 07:19 AM

        lol

        Uh oh. To the bat phone. Call Bob Prechter!

          Oct 07, 2016 07:21 AM

          haha! Good one Richard.

      Oct 07, 2016 07:42 AM

      Speaking of Jaguar Mining – earlier this week I had a long winded response to a guy on CEO recently regard JAG and figured I’d post it here as part of this thread for investors that follow Jaguar.

      A poster had asked me how Jaguar stacked up to Helio Resource group, because they saw the news release about the JV on their Gurupi project and must have thought that was their primary flagship property. Anyway I did my best to encapsulate the JAG story here in my response:

      ________________________________________________________________________

      @Excelsior – “@bullionaire – It is difficult to compare $HRC Helio Resource Group #exploration to $JAG $JAGGF Jaguar Mining #production [apples and oranges].

      Even though they are currently trading like a penny stock, Jaguar is a previous Mid-tier miner (that was trading at $6), that crashed and burned in the last cycle when the #GOLD prices collapsed. They were forgotten, but have restructured, retained all their mines & projects and are starting to be remembered once again. Jaguar will likely get re-rated in a major way over the next year or so. $JAG has 4 mines (Turmalina, Pilar, Roca Grande, and Paciencia) in 3 complexes, along with the Gurupi development project, and the Pedra Branca exploration project.

      • 2016 production guidance: 90,000-95,000 oz
      • 2015 production of 90,421 oz Au in the most active mining state in Brazil.
      • 2.7 Moz Au Proven & Probable Reserves (includes Gurupi)
      • 4.6 Moz Au Measured & Indicated Resources (includes Gurupi)
      • Mar-2016 Pilar Gold Mine (Caeté Gold Complex) increased
      Reserves 310% to 172,000 oz, grade 63% to 4.39

      *They just had some great discovery results at the Pilar Gold mine released last week:

      Jaguar Intercepts High-Grade Gold Mineralization at Pilar Gold Mine; Strong Potential to Convert Additional Mineral Resources and Reserves
      Toronto, Canada, September 26, 2016

      http://www.jaguarmining.com/s/NewsReleases.asp?ReportID=765904&_Type=News-Releases&_Title=Jaguar-Intercepts-High-Grade-Gold-Mineralization-at-Pilar-Gold-Mine-Strong-

      The AISC at Turmalina is $860 but at Caete (Roca Grande Mine + Pilar Mine) it is $1,468 for a combined AISC of $1203. The work is really focused to bring down costs at Caete’ and the recent exploration work at Pilar is well on the way to do so. They also have their Paciencia mine and complex on care and maintenance waiting for higher metal prices, but all infrastructure is in place and they can restart things rather quickly there.

      The Gurupi JV and earn-in announced today simply allows them to move that development project along while they focus on their primary mines.

      from #hrc, 4 Oct 2016,

        Oct 07, 2016 07:40 PM

        WARNING: This is an Editorial and the author gets compensated by selling you a subscriptions service, so it is probably worthless noise.

        However, for those that are interested in Marin Katusa’s thoughts on Gold stocks….
        Here ya go….. it is a quick read:

        Why Gold Stocks Have 300%+ Upside From Here
        Marin Katusa – SEPTEMBER 30, 2016

        https://katusaresearch.com/gold-stocks-300-upside/

    Oct 07, 2016 07:34 AM

    Matt,
    now that all the bad noise news is behind us and gold dropped,
    are we seeing a mini “dead-cat bounce in silver? I expected us to bottom today and we have your struck/surpassed your $1245 target. The silver stocks are up %5-10 here. With this action in mind, do you think we have upward follow though next week or a resumption of this quick and heavy face-punch decline. I imagine the puffy dollar is about to crack starting next week. If it doesn’t and instead goes up from here I guess gold and Silver get smacked some more? I forgot to mention that there is a good chance that China sells more treasuries and buys some gold over the next few weeks. Too many moving parts yo!

    Oct 07, 2016 07:52 AM

    If you think it’s a bottom it isn’t.

    When you know it’s a bottom it’s too late.

    Oct 07, 2016 07:25 PM

    HUI: 250 before 180. Condition for bull market. If it fails, I will go neutral.

      GH
      Oct 07, 2016 07:14 PM

      Richard, I like your approach–empirically based, no pretense at a crystal ball.

      But I would suggest that 180 is a bit rigid. Flanagan (Gann Global) says that of the past four gold bulls, the average retrace after the first upleg in a new bull market, is 59%. That means a pullback to about 176. And if that is the average then, obviously, a retrace to lower than that wouldn’t be out of the question.

      Here’s the long-term gold chart, with very precisely drawn trendlines. As long as gold is above these lines, the gold bull is not in doubt.

      http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&st=1998-12-03&en=today&id=p39308908365&a=441277001

    Oct 07, 2016 07:31 PM

    Ugly market. It has essentially gone nowhere in 3 months, exactly nowhere. Talk about paint drying. One hiccup and right back to average price.

      Oct 07, 2016 07:20 PM

      WARNING: This is an Editorial and the author may have been compensated in some way for writing it, so it is probably worthless noise. However, for those that are interested in someone else’s thoughts on volatility, that has given it some thought…. Here ya go….. it is a quick read:

      Is The VIX Ready To Pop Again?
      Oct. 7, 2016 – The VIX Channel

      http://seekingalpha.com/article/4010890-vix-ready-pop?auth_param=c9otd:1bvftvu:dc545a5df9baea30ba972f1b7208ad78&uprof=45#alt1

        GH
        Oct 07, 2016 07:17 PM

        I am very much of the opinion that a pop is imminent.

        Look at $VXO vs UVXY. There is a very positive divergence going on

        Of course, I might get schooled once again, but that’s the odds as I see them.

          Oct 07, 2016 07:06 PM

          I’m holding a UVXY position that is slightly underwater, but it would only take a dollar or two to put it back into the money. I have little doubt will see a pop soon in volatility.

    Oct 07, 2016 07:43 PM

    I said yesterday I believed the selling was extreme, over done and not based on anything.

    I then said I believed we were at or near the end of this selling attack.

    I also added that the $1250 level was around good support.

    My $1212.80 bottom call WAS NOT VIOLATED.

    I stand by that call.

    I believe we had one more cascade down event earlier today, call it a shooting star or whatever you technicians call it and it failed.

    Probability of November and December rate hike greatly reduced due to “goldilocks” NFP print.

    The bottom is in. IMHO.

      Oct 07, 2016 07:56 PM

      Nice!
      Rate hike, shmake hike, who cares? Blah… My friend, just watch the 2s, 5s, 10s, 30s.

    Oct 07, 2016 07:47 PM

    Before the close on Friday, I wanted to mention that I added ROC to the discussion on the weekly $VIX chart. If gold and gold miners are being absolutely eviscerated in the week of the Chinese holiday, then this is in preparation for something else. Looking to the VIX, you have a pair of dojis after the ‘A’ pattern, and a positive ROC.

    http://schrts.co/DGY94J

    Oct 07, 2016 07:59 PM

    what comes first the chicken or the egg?

    Oct 07, 2016 07:59 PM

    did you ever see all those karate places where kids go to learn karate?

    do you see all the trophies they all have in their windows?

    Oct 07, 2016 07:02 PM

    Wasn’t somebody talking about bizarre comments???
    Yes the trophies are handouts for all of the kids that pay good money to learn karate 😉 Everybody is a winner.

    Oct 07, 2016 07:03 PM

    events happen, robots react, price moves.

    keep repeating that to yourself

    events happen, robots react, price moves

      Oct 07, 2016 07:53 PM

      absolutely true! Problem is the robots outnumber the humans now 😉

    Oct 07, 2016 07:10 PM

    Everybody might be a winner in karate, not in trading…

    Oct 07, 2016 07:12 PM

    value and edge
    – Pittsburgh Phil

    value and edge

    Oct 07, 2016 07:16 PM

    The Top “Dirty Dozen” Silver Stocks on the OTC that pushed out of the starting gates fastest today (10/07/2016) after a very bearish week in the metals complex.

    KER readers may note that very few are ever featured on the Kitco lists, and most ETFs have very small to no exposure in these companies, and yet, we’ve discussed all of them on the KER and most of them earlier this week 🙂

    % GAIN Top Silver Stocks – 10/07/2016 Symbol

    26.05% SILVER BEAR RES INC SVBRF
    24.28% SILVERCREST METALS INC SVCMF
    18.12% IMPACT SILVER CORPORATION ISVLF
    12.64% AURCANA CORPORATION AUNFF
    10.92% EXCELLON RESOURCES INC EXLLF
    10.92% AVINO SILVER & GOLD MINES LTD ASM
    10.60% MAYA GOLD MYAGF
    10.28% CANASIL RESOURCES INC CNSUF
    10.12% DEFIANCE SILVER CORP DNCVF
    7.84% SANTACRUZ SILVER MINING LTD SZSMF
    6.38% SIERRA METALS INC DBEXF
    6.01% GOGOLD RESOURCES INC GLGDF

      Oct 07, 2016 07:43 PM

      Now that’s a great way to head into the weekend !!

        Oct 07, 2016 07:52 PM

        Oh…..it was also a great week to be “selective” and adding to positions in many of these companies that just closed quite a bit higher than their sale prices on Tues-Thurs.

        Cheers!

          Oct 07, 2016 07:20 PM

          IPT.v looks great when priced in GPL and is up sharply in the last few days:

          http://stockcharts.com/h-sc/ui?s=IPT.V%3AGPL&p=D&yr=0&mn=9&dy=0&id=p54434865340

            Oct 07, 2016 07:09 PM

            I like the prospects for them both, but hold a nice Impact Silver position at present, and sold out of my Great Panther a few months back. I may still pick up some Great Panther, but will remain much more heavily weighted in Impact on a move-forward basis.

      Oct 07, 2016 07:04 PM

      Darn it ! I was going to open a position in Silver Crest, but was traveling today. No trophy for me.

        Oct 07, 2016 07:08 PM

        Well there is always next week. If the Chinese don’t buy up a storm when they are back from holiday, then we may get another chance to catch a clearance sale. Honestly, most miners have pulled back substantially from their Summer highs, so buying anywhere around these levels or lower makes sense to me.

        “If you can’t own all of them, at least own some of them…”

          GH
          Oct 07, 2016 07:47 PM

          “buying anywhere around these levels or lower makes sense to me.”

          I agree. Nailing the bottom perfectly is a matter of luck, not skill. There is all kind of uncertainty about where the gold price, and PM miners, will go from here until tomorrow or next week.

          But from here to the peak of the next upleg in PM miners will be a strongly positive trajectory, I believe. That’s about as good as it gets.

            Oct 07, 2016 07:15 PM

            Agreed GH. That’s why I start tiering into the position when it’s corrected 20-30%. If a stock goes back 50% like some of the mining stocks have, then it is even easier to start positioning. The next upleg will take us much higher, so the key is to get into at least some position. I’m about 50-60% in at this point, and plan on taking that up to 80% in the next week or so. I’ll save one last tranche for if the metals fall out of bed, but I’m more than half way invested. I’d actually like one further thrust down to deploy my next tranche and then I’d like the next leg higher. Hopefully those Chinese don’t get too carried away next week but if they do, I’ll trim 10-15% into the strength. 🙂

        Oct 07, 2016 07:46 PM

        Brixton Metals primary ticker (BBB) was also up 10%, but on the OTC (BXTMF) was down 1.47%. Maybe the OTC will play catch-up to the Canadian ticker next week.

      Oct 07, 2016 07:52 PM

      Thanks for the update…..and hard ass et work this week.

        Oct 07, 2016 07:05 PM

        Yes, a good reversal to the week for the Silver miners that we often discuss here on the KER

    Oct 07, 2016 07:48 PM

    better to own part of a good horse than all of a bad horse

    Oct 07, 2016 07:58 PM

    There is no way gold bottomed today. The weekly candle is just too large to be the basis for a swing low.

    The best we can hope for is a marginal new low next week. On the weekly chart the lower bollnger and 50 WMA ($1230) are so close, I don’t see how they aren’t hit.

    The 100 WMA is at $1205. I don’t think gold gets that low, but it is a realistic possibility.

      Oct 07, 2016 07:06 PM

      Sounds reasonable Spanky. Where you been man? It’s been a while.

        Oct 07, 2016 07:17 PM

        +1, very reasonable.

      GH
      Oct 07, 2016 07:58 PM

      I totally agree, Spanky. The weekly gold chart, as well as Matthew’s silver:gold chart posted below, suggest a bit more weakness at least.

      I’m still watching out for Flanagan’s targets, which would be roughly 20 in the GDX.

    Oct 07, 2016 07:44 PM

    I find this kind of technical analysis ridiculous. How can you say anything about a miner like Oceanagold without looking at what has happened in the Philippines with the DENR audit or the Haile Mine coming online? Oceanagold was hammered the last few months but the DENR is now back tracking and it looks like the Didipio mine will not be shut down as first thought. Looking at the past chart tells you none of this. Rick did the same thing a while ago when he analyzed Royal Gold without any knowledge of news coming out of the Mount Milligan mine and Centerra’s merger. Doing technical analysis on stocks that move on news orbinary events tell you no more than what a rear view mirror tells you when you drive a car. It is an indicator only. You need to see fundamentals first….then look at technicals. If you don’t do this, you are going in to a street fight with one arm tied behind your back.

      GH
      Oct 07, 2016 07:51 PM

      TA on individual companies is dodgy. Of course company-specific events can throw a wrench in the works of any TA prognosis. That said, if the fundamentals are a go, then TA can help with entries and exits.

        Oct 07, 2016 07:19 PM

        +1 GH. I look at the fundamental back drop of a stock first, and any major news flow (bullish or bearish) than can affect the stock in the short to mid term. If everything is plodding right along, then I use technical analysis to assist with entry and exits.

    CFS
    Oct 07, 2016 07:16 PM

    Or going into a fight carrying a briefcase
    https://www.washingtonpost.com/news/worldviews/wp/2016/10/06/altercation-amid-pro-brexit-party-meeting-leaves-rising-star-floored/

    I always think of Indiana Jones when a guy pulls a knife and Indiana shoots him!

    Oct 07, 2016 07:16 PM

    The silver-gold ratio has precisely retraced 50% of its move up this year and managed to close the week above the 55 and 89 week EMAs but still closed below its uptrend support.

    SLV:GLD
    http://stockcharts.com/h-sc/ui?s=SLV%3AGLD&p=W&yr=3&mn=8&dy=0&id=p53916317817&a=479600340

    Oct 07, 2016 07:22 PM

    The bears were able to stop the CRB from breaking out for the third day in a row:

    http://stockcharts.com/h-sc/ui?s=%24CRB&p=D&yr=0&mn=7&dy=0&id=p69104485612&a=462466862

    Oct 07, 2016 07:07 PM

    OTC metals may have been up but what were the bid/ask spreads? Were they tradable?

      Oct 07, 2016 07:20 PM

      I bought half of those stocks for much lower Tues – Thurs, so yeah, they were tradable.

        Oct 07, 2016 07:22 PM

        Jason, I just use limit orders, place my stink bids and hope they get filled, or at least partially filled. That way no matter if I’m sidetracked the orders go through. Sometimes I don’t get the whole amount I asked for, but I just keep chipping away at it. (Nibbling as Doc would say).