B2Gold Corp. painting a pretty picture

Jun 22nd, 2011 – Comment

Until BTO breaches its trend line it looks like it has more gas in the tank. The trend that has been established is one of higher highs and higher lows which is very positive.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Hi Lou,

I would like to thank you for sharing you insight in stocks. They are very valuable to me.

I am holding BTO.TO for sometime; purchased at 2.29/share. Do you think this stock still can go higher and for how long?

 

Hi Julian,

Thanks for the assignment. Good to hear that you are getting value from the analysis conducted at the request of readers like yourself. B2Gold Corp. ( BTO TSX) has two mines and exploration properties in Nicaragua as well as prospects in Columbia and Uruguay.

The management team at BTO has a history of creating wealth. They marshaled Bema Gold Corp. to a $3.5 billion payday when they sold it to Kinross Gold in 2007. The charts will provide some guidance as to future potential for this stock.

The the three year chart paints the picture of a text book advance. A nice steady uptrend with repeated tests of support along the 50 day moving average.

 These are the stocks we want to own and profit from with this caveat. Watch them like a hawk for a trend reversal. Trees do not grow to the sky and stocks don’t go up forever!

The six month chart illustrates the trading opportunities for those that are not strict buy and hold investors. The RSI and MACD both signalled a sell in early April when the shares traded at $3.60. The retreat back to $2.80 represented a 22%  pullback from the high. In mid May the signal generators indicated a buy at $2.80 that ran to $3.70 for a  32% gain.

Until BTO breaches its trend line it looks like it has more gas in the tank. The trend that has been established is one of higher highs and higher lows which is very positive. However that does not mean put your brain in a drawer and never look at the charts again. No investment is immune from risks.

Make it a profitable day and Happy Capitalism!

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