Thursday, January 9, 2014

Seems like the right time to buy B2Gold, unless it's not

Well, this is interesting:

B2Clive has been slowly flagging up. It's made two attempts to break above the SMA(50), printing a higher low on each fallback. It's not a company run by morons, and last I checked Namibia and Nicaragua aren't at war with each other (though unfortunately there's that whole Philippines thing).

So is this price the right price for an entry? Apparently, some TAs say that the longer a flag goes up, the more likely it is that it fails downwards. And besides, the bias in gold miners has been downwards for the past several years. Why buy a downward market? Buying Spain is less risk right now.

I guess it all depends on what you think the juniors are going to do this month:

That little challenge of the SMA(50) is positive, all we're seeing so far is a pullback to the EMA(16), and India's about to announce some improvements to their gold import rules.

Then again, the longer-term chart for gold still looks like puke. Gold could still fail.

Then again then again, that longer-term chart looking like puke is the justification everyone's using for expecting gold to collapse to $1000 and below, which I still think is silly, and which ain't going to happen simply because everyone's now expecting it, but yet there's very little profit-to-risk in it compared to say the short of gold at $1500 that ended up working so well.

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