Confluence of Great Basin Gold

With another good day for gold stocks, I'll continue my recap of how I timed some of my recent buys.

I have owned Great Basin Gold (GBN) since early 2007. It wasn't a large position but one that I liked fundamentally and technically. With gold rising ever higher, I was always on the lookout for another opportunity to add to my shares of GBN.

The chart below is a weekly that has two trends defined by a blue and green line. I have also plotted the Fibonacci retracement levels of each trend. You can see that there is very good agreement between the 0.382 retracement of the blue trend and a 0.618 retracement of the green trend. This overlap is referred to as "confluence" and often serves a support. I was looking for this and picked up some GBN at the 2.50 mark. As you can see, I took a little heat for about a week but overall, the timing of the buy was pretty successful.

Notice also that GBN bounced off another confluence point defined by the 0.236 retracement of the the blue trend and a 0.382 retracement of the green trend. (I didn't buy any more)





More on confluence

Finally...a winner

I mentioned that I've been having a hard time with this choppy market and that the only thing that has been doing well for me are the gold stocks.

I own a small stake in ANO, which has been gang-busters recently. But other than that, my other gold stocks have been hovering around their lows. That changed today when US Gold Corp (UXG) announced a favorable exploration result. The stock is up 23% right now. I also own Great Basin (GBN), which is up a nice 5% today. I was getting worried because it seemed like most of the gold stocks had already taken off.

Now if Tanzanian Royalty Expl. (TRE) can wake up, I'll really be happy.

On another note, I'm still waiting for the pullback in MTLK so I can buy. No luck so far.