Copper – gold explorer Golden Cross Resources, which was the subject of an email alert sent out over an hour ago when it was priced at C$0.68, is looking like a strong buy here. Yesterday the company came out with
positive drilling results although you wouldn’t think so from the action of the stock. Recent price / volume action suggests that the market may “smell” a funding in the works, but if so then it’s a poorly kept secret which means that rather than drop on the news of a funding, it could instead rally if it’s not too far below the current price. Technically, it certainly looks set up to rally as all this month we have seen a countertrend reaction (counter that is to the larger prevailing trend which is up with moving averages in bullish alignment). The lesser downtrend this month has brought the price back into a zone of significant support and to the vicinity of its rising 50-day moving average and to the lower boundary of the larger order uptrend channel, in the process completely unwinding the earlier overbought condition as shown by the MACD indicator at the bottom of the chart – in other words it has brought it back to a classic “buy spot”.
It is thus very interesting to read Mr Bob Moriarty’s brief assessment of the company following the release of the results, in his piece entitled
Golden Cross Drills, Delivers Bigly posted on 321gold.com. Amongst other points he makes are these two key ones: one is that Golden Cross is contiguous with Southern Cross Gold which has a vastly greater valuation and the other is that drilling is ongoing at Golden Cross with a steady stream of assay results in prospect.
Golden Cross Resources is therefore rated a strong speculative buy for all timeframes.
Golden Cross Resources, AUX.V, ZCRMF on OTC, GCR.ASX, trading at C$0.70, $0.50 at 3.30 pm EDT on 30th September.
Posted at 3.40 pm EDT on 30th September 25.