Powerful Head & Shoulders Pattern

This powerful and inverted "head & shoulders" pattern has been forming since beginning of 2008. This pattern is telling us that last year decline after the Lehman collapse was a classic selling climax. Gold was dumped in the rush by hedge funds and others to de-leverage. That selling led to a bottom that was marked by emotion, not logic. Gold will climb above $1,000 this year and stay there to validate "head & shoulders" pattern. The moment is rapidly approaching.

Eldorado Gold Corp reported a second-quarter profit that beat market estimates, helped by higher production, and reiterated its production outlook for the full year. I think EGO is at good position to benefit from the imminent rising price of Gold.

Disclosure: Long EGO

Northern Dynasty is pushed up after rebound from support

The world needs copper and gold especially from Chinese economy. The pebble project must be developed. Recently NDM is picking up again with this favorable environment. Technically it broke the downward trend recently and MACD is positive again. It also could be potential takeover target.

I am Long on NDM.

Endeavour Silver Looks interesting

Today, Endeavour Silver Reports Production for Second Quarter, 2009; Produces 578,641 oz Silver (Up 12%) and 2,750 oz Gold (Up 61%) or 762,891 oz Silver-Equivalents (Up 21%) Compared to Q2, 2008. It looks like that EXK has moved higher from support. MACD turns positive and 5 days moving average is about to cross over 10 days moving average. At least in short term it is moving higher. In the longer term, Gold and Silver can not have much better fundamental, which definately adds to the upside of EXK.

Disclosure: Long EXK.

God Bless America

Top 10 holdings for gold stock fund

This is the list of top 10 holdings in the precious metal funds by end of first quarter of 2009. We can see the popularity of the gold stocks among the funds:
Senior: K.TO, G.TO, AEM.TO, YRI.TO, Eld.TO, ABX.TO, IMG.TO
Junior: SGR.V, RBI.TO, OSK.TO

JP Morgan Upgrades Evergreen Solar (ESLR) Two-Notches to Overweight

July 2, 2009 7:06 AM EDT

JP Morgan upgrades Evergreen Solar Inc. (Nasdaq: ESLR) from Underweight to Overweight and raises their price target to $5.

The firm's price target represents over 100% upside from yesterday's $2.15 close.

Evergreen Solar, Inc. engages in the development, manufacture, and marketing of solar power products primarily in the United States and Europe.