An Attractive Speculative Gold Play

By The Gold Report

Source: Clive Maund for Streetwise Reports   03/17/2018

Technical analyst Clive Maund charts a gold explorer that he believes has the “potential to take off higher suddenly on positive drill results.”

Golden Ridge Resources Ltd. (GLDN:TSX.V) looks like an interesting gold–silver play here for more
speculative readers. On its latest 6-month chart we can see that it
appears to be in a basing pattern so far this year after losing
two-thirds of its value from its early November peak due to a severe
downtrend. Of particular note is the high volume surge on one day in
January, due to positive drilling results, which should continue to have
bullish implications going forward and appears to have put a floor
under the stock, because if such results can be achieved once they can
be achieved again, and very possibly bettered by later drill results. So
downside is likely to be limited from here on, while upside is
relatively unlimited, and will be improved if gold and silver move into a
bull market in due course, as is expected. This is why Golden Ridge is
viewed as a relatively attractive and low risk speculative play here.

The long-term 8-year chart shows us that Golden Ridge has traded at much
higher prices in the past, but is otherwise of little use technically,
because the company went into a trading halt or period of suspension
during the middle part of last year, and looks like it underwent a
restructuring, so that it probably bears little relation to its former
self.

The conclusion is that Golden Ridge is an attractive gold–silver speculative play here, that has the potential to take off higher
suddenly on positive drill results. However, buyers should be aware that
it might not do anything for weeks or even months, and it should be
regarded as a “sleeper” for this reason, since it is very difficult to
predict exactly when it will take off higher, although January’s
drilling results do suggest that it could be sooner rather than later.


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Golden Ridge website

Golden Ridge Resources Ltd, GLDN.V, closed at C$0.13 on 16th March 2018.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ 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.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Ridge Resources, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:
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.

( Companies Mentioned: GLDN:TSX.V,
)