Most precious metals bulls know where we stand this week.....)recently broken out of a 17 month bullish pattern that suggests, not promises, a good run into the late year end and possibley early spring. Of course not without the normal stops and starts and mini corrections. The fact that precious metals have been consolidating for such a long period adds to the credibility of the bullish formation.
So which are best pm shares to own? Well many seniors have similar patterns and the leaders are obvious...Agnico Eagle, Kinross, Goldcorp, Iamgold, Royal Gold. Accumulating a large block of shares @ $75 per share might be tough for the average person, so buying liquid call options is good leverage. Date and strike price are important here and professional advice from an accredited advisor. Leverage works both ways....on way up and on way down...quickly
In the juniors, I have covered some of the beaten up silver plays which were grossly undervalued. They have started to move, but have miles to go, and silver has a $23 to $25 target on this trending move which might last til April 2010 imho. Silvercorp, Great Panther, Bear Creek, Orko Silver, Scorpio, all look very attractive on weakness. Entry points depend on the type of investor, long term or short term.This is obviously not aimed at the day trading personality, as that requires a much different approach.
IN the Gold juniors...........one that is purely an explorer and with multiple potential discoveries is Eastmain. or ER on the TSX . It operates in Canada and mostly in Quebec, ( the James Bay District) which is incredibly mining friendly. It has all the power and infrastructure nearby and there are economical deposits surrounding the targets, such as:Elenore deposit owned by Goldcorp. And speaking of seniors, it has joint ventures or partnerships with an impresive group........... with Goldcorp , Barrick gold, BHP Biliton,Xstrata, Franco Nevada, As far as shareholders....Goldcorp owns 9% of Eastmain. Sprott Securities is also a major shareholder. Interesting market cap compared to other exploreres...some of the popular ones. imho the market cap is still very small.
I might summarize juniors this way.....it is MHO that as the major trending moves develope in precious metals juniors will be the go to investments and biggest gainers.
Michael Gray of Genuity covers it along with Laurention. Gray has a target of $2 on it. Currently it trades at aprox $1.40 some links to the website and presentations...
What about the TA ? Well nothing too complicated here. Lets just keep this simple and suggest that the basic trend ling upwards is very clear and higher highs and higher lows along the way up make this a very nice uptrending move. Clear of the 200dma and 50dma which now should be strong support. It is neither overbought nor too expesive at moment judging from RSI and MACD still moving upwards, so this is positive. $1.30 to $1.25 looks like a good level of support should the physical gold and silver correct a bit from here. That will affect all pm shares as the .76 level on the USD gets defended and if some stale longs decide to unwind.
Good luck to all...
disclosure, I own shares of Eastmain.