Clive Maund - Tue, Apr 30, 2019

A Golden Triangle Stock for the 'Seasonal Spike'

Technical analyst Clive Maund charts this firm with exploration success in the Golden Triangle.

Golden Ridge Hank Project

Golden Ridge Resources Ltd. (GLDN:TSX.V), a company with a project in the Golden Triangle, is considered to be among the best in the district. Note that the seasonal speculative spikes that we are expecting in Golden Triangle stocks may not get underway until the late summer, so this is more about positioning at good prices ahead of time.

On the 6-month chart for Golden Ridge we can see that we missed the chance to zoom in and pick it up cheap at the bottom of its annual cycle in December. After hitting bottom in December it proceeded to form a Cup & Handle base and it was our observation of this pattern that prompted us to buy it in March, as it looked very close to breaking out of it, but it has since basically tracked sideways in the weeks since we bought, which didn't really surprise us as it tends to make its big gains in the late summer - fall months, and it is now becoming clear that it is evolving into the moderate uptrend shown, in which case it is a strong buy here, as it is near to the lower boundary of this uptrend, with the prospect of it soon rallying towards the top of it, especially as the pressure now seems to be coming off the sector.

A key point to make with Golden Ridge is that once speculative interest centered on drilling intensifies in the mid-late summer months, it is likely to blast out the top of this relatively mild uptrend into a potentially dramatic spike, as it has done the past two years during the late summer-fall, and just as we did early last fall we will be ready to take profits in it into strength on this speculative interest, assuming all goes to plan.

We can see the spikes of the past twp seasons on the latest 2-year chart below.

This looks like a good entry point for Golden Ridge here, with it still near to the lower boundary of its uptrend channel and looking ready to take out a line of resistance at about 13.5 - 14 cents, so we stay long and it is an immediate speculative buy here. The point at which to become concerned if it should deteriorate would be if it breaks down from the uptrend and then below support at 11.5 cents, although this is not the expected scenario.

Golden Ridge Resources Ltd. website, GLDN.V, GORIF on OTC, closed at C$0.135, $0.097 on 26th April 19. Posted at 4.25 pm EDT on 28th April 19.

Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click below for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Golden Ridge Resources. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Golden Ridge Resources.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Golden Ridge Resources, a company mentioned in this article.

Charts and graphics provided by the author.

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