GDN 0.00% 1.7¢ golden state resources limited

wallflower about to bloom?

  1. 749 Posts.
    After years on the sidelines watching more fancied resource stocks win admirers, mining minnow and former "big mover" Golden State Resources looks as if it's about to finally step out of the shadows. The more times a stock attempts and rejects beakout without falling to fresh lows, the more pent-up momentum it builds. GDN is in this category as a glance at is chart over the past two years will reveal.

    With news that it is currently following up the exciting assay results of its 100% owned Leonora gold tenement with further drilling, the buy side has strengthened markedly in recent days and the stock is once again nudging the 5 cent mark.

    Catherine Davey, respected TA from Investorweb, has GDN pegged as one of the most exciting of her "big mover" gold speccies. She believes a close above .052 cents signals breakout and points to GDN's exciting history (albeit tech-fuelled) in 2000 when the stock moved from .049 - 52 cents in just nine months. While no one is expecting a breakout of quite these proportions this time, GDN has undoubtedly far stronger fundamentals behind it on this occasion and a bit of gold fever could really send it soaring.

    If GDN moves through .052 on strong volume, it may be a case of "hang on for dear life." I'm prepared to hold in anticipation of this eventuality. Certainly a comb-through of its gold-bearing tenements suggests the stock deserves upward re-rating by the market IMO.

    Prospective investors should conduct their own research.


watchlist Created with Sketch. Add GDN (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.