meszaros

GORO before rising.

Long
AMEX:GORO   Gold Resource Corporation
GORO before rising. Gold Resource Corporation( GORO ) Although its name refers mainly to a gold producer, gold mining accounts for nearly 20% of total production. It is also heavily involved in the mining of industrial raw materials (zinc, silver , copper , lead). The company has no debts. It pays dividends. Let's return to the technical analysis . The two green squares show the two wave sequence areas built up in the accumulation range. You can see that the price movement has reached the upper level of the accumulation range. Two white dotted lines are shown in the figure. The thicker line at the bottom is the more interesting one. This axis is the D1 ATR axis of price movement. This axis often functions as a wave sequence axis. This is what is happening in the current case. The top thinner white axis is the "mirror axis" of this ATR axis. Other strategies call this the "channel line". Its role here is more important than its name. Its role is to take price movement out of the accumulation range. These lines, when calculated and marked, are immediately decoded by sharp-eyed traders as a breakout signal, and therefore the number of long entries increases at this stage. The price movement then starts to rise as it crosses the upper axis. Sometimes more conservative traders wait for this axis to be retested. Moving on. My assumption is that the price movement will start to move up. Building a double wave system it will reach the first technical target price : 3.23 usd

Comment: The current fair value of GORO is 2.41 usd. It is currently using this as the stock's support level. My investment strategy in GORO is not based on fair value, but on the expectation of a 100% increase in the future price of gold and copper and silver. GORO mines all three commodities, so I assume that the company's current very low valuation ($180 million) will possibly double. The enterprise value of a mining company is closely related to the amount of mineral strata the company explores. GORO is discovering more and more layers every week.