Gold Stock Double Bottom Reversal?

While the crisis in Europe continues unabated, we turn our attention to developments that may be overlooked in recent months.

Junior gold stocks have been beaten up quite badly and there are some indications they may be poised for a rebound.

My favorite is Golden Goliath Resources (GNG) on Canada's Venture Exchange.

This stock saw substantial action back in January when prices almost quadrupled, only to slowly be ground down back to where they started.

From a technical analysis standpoint, a clear double bottom has formed and appears to be reversing on higher volumes as the chart shows.

This stock shows some potential for some quick returns, in my view.

What is also interesting is an even smaller junior gold stock, Lincoln Mining (LMG) is showing the same double bottom pattern.

I am not particularly interested in this stock as volumes traded are too light for me.

 Note: The blogger presently has stock positions in both GNG and LMG.


  1. Something has to give, I will go long the ticker.

    Assume Bernanke is buying Euro bonds, saving Europe. Euro will go up, USD will go down. US Equities will go up, and Gold will go up somewhat, but the reduction in "fear" will limit it's immediate rise.

    But this triangle is amazing, and it will break up or down.


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