Source: Clive Maund for Streetwise Reports 08/08/2018
Technical analyst Clive Maund charts a gold explorer and producer with projects in Argentina.
The 6-month chart for Friday’s close for Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) (Canadian market shut Monday) shown below was posted on the site before the open Tuesday, with the promise to post a fuller description with a 3-year chart later. As it turned out the sector dropped quite hard today, with the GDX (VanEck Vectors Gold Miners ETF) looking like it is breaking key support, and it was mentioned in the
Gold Market update at the weekend that Big Money might organize a “head fake” move below clearly defined support on GDX to shake people out before a turnaround and rally, although obviously Tuesday’s action is concerning as it could lead to a sharp sector drop.
As far as Golden Arrow itself is concerned, it had a good day, closing up 2 cents, or 4%, and it looks like it is breaking out upside from the rather small Cup & Handle base shown on our 6-month chart.
Moving on to the promised 3-year chart, we see that a positive pattern has developed in Golden Arrow over a long period of time. Following a huge run-up during the first half of 2016, it reversed into a bear market, which has taken the form of a 3-arc Fan correction. An early sign of a trend change from down to up was the breakout above the second fanline and sharp advance toward the end of last year. After peaking at the start of this year, it went into a steady decline as it was forced lower by the third fanline. However, it turned up again before dropping as far as the late 2017 low, which was a bullish indication, and has recently broken out above this third fanline by virtue of moving sideways. So it looks like this bear market is done, especially as the Accum-Distrib line has been positive overall relative to the price.
