Forum Archive Index - May 2004
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[sharechat] PNA looking good
PNA looking good over the next few weeks and beyond. The US dollar has now
turned into a classic technical sell in favour of other currencies such as
the Euro and the UK Pound. The US dollar internals (MACD and RSI) have
peaked and look like heading downhill again, so sell the US dollar into any
uptick strength (sell into strength). Gold on the other hand is also
trading as a currency, but in inverse proportion to the US dollar and
therefore gold will rise as the dollar falls. This is confirmed by gold's
technical chart which looks like a classic buy with the internals (MACD and
RSI) becoming strong and upward bound, so buy gold into any downtick
correction (buy into weakness). This includes gold shares such as PNA and
As a gold stock, PNA technicals further confirm the above US dollar/gold
scenario (as I previously posted when PNA was trading around 16 cents) as do
many other gold stocks, with PNA's internals (MACD and RSI) now bottomed and
heading higher, along with a share price increasing on increasing volume.
This is the stuff of classic buys. I'm sure many other gold stocks are
similar, so do your analysis, but at the moment, PNA is my favourite for a
wide range of reasons such as ...
SCD's (ozestock board) detailed fundamental analysis of PNA, a growing
number of buy recommendations from brokers which will further increase
buying volume and support, a series of positive announcements and upgrades
expected, excellent spread of quality copper/gold tenements, good
management, plus more. All of this just combines to further enhance the
classic buy situation.
Then there's the unknown premium. The terror factor. We all saw what
happened to gold when the USA invaded Iraq. Imagine what would happen if one
terrorist nuclear "dirty bomb" was detonated against any Western interests.
Whilst not many would die, the fear factor would definitely take over and
linger around for ages. Any real nuclear detonation would compound the gold
terror premium at least tenfold. What is the chance of just a minor nuclear
"dirty bomb" being detonated by terrorists this year or next year? According
to the USA government, the odds are extremely high and they expect this to
occur, basically they publicly stated that it's inevitable.
In the case of PNA we have a classic fundamental buy, classic technical buy,
and classic terror premium buy. This will be the case for other upcoming
quality junior copper/gold explorer/producers so get stuck into some
research and due diligence now. There's plenty of money to be made in gold
stocks. This is a great time to buy.
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