If you are investor or speculator who likes to go where the action is, and at this time it is important to note that we mean upside action not downside action, then this one is for you.
NV Gold stock is in a dynamic advancing phase because it is drilling a potential Carlin type gold system in Nevada. As Bob Moriarty of 321gold states “they have drilled what appears to be a Carlin style gold system. If they even have a sniff of gold the stock is going to go to $30/share. If you hit a Carlin deposit you go from a $10 million market cap to a $1 billion market cap overnight.”
Whether this is true or not or perhaps a tad optimistic, the chart for NV indicates a high probability of another sharp upleg very soon. On the latest 3-month chart we can see that after it rocketed higher from about C$0.30 to C$86 a few weeks back it has gone into an increasingly tight trading range that has allowed its extremely overbought short-term condition to partially unwind. The volume pattern is very bullish indeed, with the advance being driven by huge volume which has eased right back as the range has formed, indicating that this range is not a top but a consolidation pattern – a bull Flag / Pennant. If so then we can expect another upleg imminently that it is likely to be of similar magnitude to the last one, since these Flag patterns tend to “fly at half-Mast” – imminent because the volume has become relatively light.
The long-term 10-year chart also suggests that the move has much further to run. This chart shows that it is set up to run at the resistance level at earlier highs in the C$2.05 – C$2.25 area, and of course, if a significant discovery is made, it could easily fly off the top of the chart. In the old days this would have been a bit of a problem requiring the drawing of a new chart, or another piece of graph paper appended at the top, but these days computers figure it out and adjust the scaling, but I digress.
The bottom line is that this stock looks set up to fly again, and make a similar move to the one earlier this month, and it is therefore rated an immediate buy, and for safety a stop could be placed beneath the support shown, at say, C$0.64, although placing a stop here risks being whipsawed out. The Flag looks real pretty on the chart for the US traded stock. There are 34 million shares in issue.
NV Gold Corp website
NV Gold Corp, NVX.V, NVGLF on OTC, closed at C$0.73, $0.586 on 27th March 18.
Posted at 10.00 am EDT on 28th March 18.