Although the consolidation pattern in White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) has dragged on for longer than we expected and it is a shade lower than when we last went for it early in February, the technical condition of the stock has improved, especially in recent weeks.
On the latest six-month chart we can see that it has trended sideways to slightly down since early February but in recent weeks the Accumulation line (and On-balance Volume, not shown, which is stronger still) has trended higher and it didn’t even drop on the price dip of recent days and actually rose as a bull hammer formed on Friday when it dug into support. This is bullish volume action that suggests it will probably reverse to the upside immediately.
We therefore stay long and this is a good point to add to positions or make new purchases. The long-term outlook for White Gold is very positive.
Visit the White Gold Corp. website.
White Gold closed at C$0.63, $0.50 on 1st April 22.
Originally posted on CliveMaund.com on 3rd April 22.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years of experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a diploma in technical analysis from the UK Society of Technical Analysts. He lives in southern Chile.
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Charts provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.