Technical Setup Looks Good
Today is an inside trading day for gold and mining stocks. Timmins weaker today than its peers which is disappointing considering yesterday's rally was rather subdued especially after hitting a new 52-week low on Tuesday. However, the positive note is that it has closed the open gap up at $1.47 and the set up exists for an extended bullish reversal run.
Gold and most other major mining stocks have just given positive technical short term buy signals. Timmins is on the cusp of also doing so if the low $1.40's hold and it trades above $1.50 next week. Near term it should at least retest the low $1.60's which is resistance from the new accelerated downtrend channel that formed since the Aug 26 top. I anticipate it should eventually retest its former slower, longer term downtrend channel that formed in April and in early Nov would be around $2 (and declining).
Earlier this year I informed on this board to get out of Timmins high $2's, low $3's and it was actually a very resilient stock that did not immediately decline to anticipated lows as quickly as its peers and even rebounded much stronger too. I got ridiculed by one particular poster at the time, who unsurprisingly is now noticably absent from this board, who expected it to continue its run into the moon $5+. During spring 2013 I anticipated it would likely slip to at least $1.80 with a long shot at extreme low $1.60's price. Now that the stock has recently collapsed to unfathomable depths below even $1.40 (which I even could not believe), it appears NOBODY even wants to buy this stock right now despite it being a more solid operation and even more undervalued relative to just eight months ago.