The Next Big Golden Thing

Gold continues to look technically and fundamentally fabulous.

Here’s a look at the daily chart action, via the OUNZ ETF: 

A flag-like drifting rectangle is in play, and a breakout looks imminent.

Note the phenomenal position of the key 14,7,7 series Stochastics oscillator at the bottom of the chart. The target is $37.50 for OUNZ, which is very similar to the $3760 I have for gold.

What about the stock market?

Well, it’s incredibly overvalued. The SP500 sports with a CAPE (inflation-adjusted PE) ratio of 35. Investors have been blasted with tariff tax “cannon balls,” making the market extremely vulnerable to an outright crash.

My suggestion to gold and silver stock investors: Avoid that market.

Here’s a look at today’s stagflationary cannon balls being blasted at stock market investors from the U.S. government’s de facto pirate ship:

Here’s another disturbing look at the news: 

It’s clear that the general stock market is at risk of a crash, while the miners look spectacular . . . and more so all the time.

Investors are often looking for the next big thing, and one of the recent big things for gold stocks has been Lundin Gold Inc. (LUG:TSX; FTMNF:OTCMKTS).

Here’s a look at the chart: 

Lundin sports an AISC (all-in sustaining costs) “handle” of only about $1000, and the stock looks to be headed towards $100.

What could be the next Lundin?

Well, the Lundin family is full of proven mine builders and proven winners.

Here’s a look at another very interesting company that is heavily involved in financing.

I think Montage Gold Corp. (MAU:TSX.V) could indeed be the next big (and golden!) thing.

Here’s the chart: 

Risk can be managed with a stop at $3.80 and/or $3.40 on all or part of the position. It looks like the next “100bagger” is in the gold stocks house.

Mining stock investors need perspective when buying something like Montage that has already surged.

Here’s a chart that can help do that:

The CDNX has yet to even reach the neckline of its massive inverse H&S base pattern. Some individual stocks (with Montage being a spectacular example) are going to lead the way, and appear to be overdone, when they are really only the first inning of a nine-inning game.

This is likely only the beginning of a multi-decade bull era for the miners, especially the juniors. It’s a long weekend in the United States, but after looking at some of these spectacular gold stock charts . . . investors may wish the markets never close!

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