-- Posted Wednesday, 2 July 2003 | Digg This Article
The similarity between the charts of Miramar and Golden Star Resources is remarkable, both are rising out of saucer bases completed over the same time frame, with similar volume patterns. There is one significant difference with Miramar, however, which is worth pointing out, and that is that it has not broken out of its saucer base yet, but appears to be just about to do so.
The long-term chart is a classic, which I would use to illustrate a book on TA, were I to write one. Here we see a fine saucer pattern of about 5 years’ duration, just as with Golden Star. Towards the end of this saucer, over the past year or so, we can see a dramatic pickup in volume, particularly on advances, portending a major bull market advance.
But what’s really great about this stock is that it hasn’t broken out yet, but is within a whisker of doing so, and looks very close to doing so, to me. I sincerely believe that the best way to applaud and show respect to the smart money investors who have laboured so assiduously over the past 5 years to create this saucer pattern is to climb aboard right at the start of the very substantial and sustained uptrend that should now ensue.
Looking now briefly at the short-term chart, we can see the price flirting with the highs of about May last year and the past winter. A break above these highs will signal a breakout from the saucer and the start of a major advance. Moving averages are in bullish sequence. It is somewhat overbought short-medium term, but with gold looking increasingly likely to forge ahead shortly, and the outstanding longer-term prospects for this stock, I just don’t think it’s worth the risk of missing a big move up by waiting for dips, particularly if you are buying for the longer term. Short-term risk is to about $1.20, should it dip, which I don’t expect. This is one of those rare stocks that has very little downside risk and huge upside potential, in my estimation. In the unfolding gold bull market, this should reach at least $7 - $8, I expect it to go far higher.
Miramar Mining, MNG on AMEX
Closed at $1.36 on 1st July 2003
By Clive Maund, no responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.
Disclaimer: I don't own any shares of Miramar Mining.
Kaufbeuren, Germany, 2 nd July 2003
-- Posted Wednesday, 2 July 2003 | Digg This Article
