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Golds Await Their Seasonal TurnContributed by Olaf Sztaba The May-June sell off in the gold sector was followed by a turbulent and nervous "bottom-searching" process. The bottom was reached in mid-June and immediately followed by a swift but short-lived rebound. In July an essential base-building phase began. This developing base, in the form of the bullish "V-extended" structure, should act as a launching pad for the next rally (please see below). A signal for such a move would be the HUI above 355-360.  The expected rally, at least at its outset, may not be an "all together now" event. This selectivity is already visible during the ongoing consolidation as some stocks hold their ground better than others. In some instances the next up-leg has already started. Among our favourites are Kinross Gold (K; recommended at $11.15), IAMGold (IMG; added at $8.60) and Vista Gold (VGZ; recommended at US$3.59). Note that all three reached their 52-week highs last week (please consult our "BUY&SELL" list for more investment ideas in the sector). Use the current correction
as a buying opportunity. About NA-Marketletter 321gold Inc |
Contributed by Olaf Sztaba