GBN.V This Week

Shareholders in GBN.V must be pulling their hair out at the maddening lack of interest in the stock, especially with the so-called 'positive' news release issued on Tuesday:

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportId=203200

The stock came within a hair of totally breaking out, but the news release was clearly intended to 'cool' the share price rise. Make no mistake, there is no desire to see the share price rise here. Not, at least until the La Ronge gold project is green-lighted.

The so-called 'news' is neither here nor there, not until a mining permit or license is received from the federal government. Yup, those same three-toed sloths posing as bureacrats who called a licensed tailings management facility a fish-bearing lake. The entire future of this company, sitting on billions of dollars worth of gold in robust deposits, is in the hands of total, utterly useless incompetents. And conservatives in Ottawa.

It must be said that because of the equity swap position in the company, that should the D.F.O. deny GBN.V a license to use the tailings facility for whatever reason, the shareholders are looking at a total loss, while the company moves forward in another guise under another shell. If approval for the La Ronge Gold Project is given, and the Mallard Tailings Management Facility is given a license for long term storage of effluent from the mines in La Ronge, then the entire business plan, forward looking aspect, and character of the company will change overnight.

The company is on tenderhooks until that time, but all is not lost. The weekly chart sorts out all of the noise, and gives a clear assessment of what the rally looks like. Using the same technical analysis on the weekly gold chart reveals the beginnings of a channel uptrend as well as price resistance levels:

supersize: http://www.flickr.com/photos/11747277@N07/4607963726/sizes/o/

stockcharts.com

From the chart and watching the trades on the day of the news release, there was some selling by short term traders into the rally, looking to make a trade. But they probably came away empty-handed. The day traders, and especially the naked shorters vending-forward the stock are engaged in so much painting of the tape, they may as well give up their gender identity and open beauty salons painting toenails, because this is the only way they will be able to make money.

The one consolation in the stock is that for every net settlement of shares vended-forward, another naked shorter stepped into the breach and took up the position, unaware that a major naked shorting effort had been attempting to close their position for months on end, day after day, and may very well have done so this week.

And still the naked shorters come, vending-forward shares they don't own, in the hopes that they are right about the gold price crashing.

Weekly Gold Chart

The weekly gold chart in $US is building a nice channel formation which had occurred in all other currencies around the world, with the exception of the Yen. The weekly gold chart in $US terms will begin to look like those in other currencies, its only a matter of how long the $US rally will continue, and how well the discount rate holds up.

supersize: http://www.flickr.com/photos/11747277@N07/4608007188/sizes/o/

stockcharts.com

So, How High Will The Gold Price Go?

"The future is also looking bright for the gold price, according to Dundee Wealth economistMartin Murenbeeld, who this week predicted the gold price would reach levels well above $2 300/oz.

“So, in other words we're going to go, over this long cycle, beyond $2 300. But I'm not smart enough to know when,” he told an audience in Vancouver."

miningweekly

GBN.V mines are profitable @ $600/oz. US.

Similar Moves In Euro Gold

Very similar moves in GBN.V stock and $US gold have already occurred in Euro gold:

http://www.safehaven.com/article/16789/euro-gold-e1000

-F6