B2Gold Corp still riding the uptrend

Sep 15th, 2011 – Comment

Currently there are a few things to watch besides volume. The period of seasonal strength for gold comes to an end in early October.


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Dear Lou,

Would you kindly comment on B2GOLD CORP. (BTO.TO) ?
Your help, as always, is very much appreciated.

              Binh

 

Hi Binh,

I last ran the charts for B2Gold Corp. (BTO TSX) on June 21, 2011 for Julian. At the time it was advised that the uptrend was firmly in place and that there was more in the tank.  Since then the shares have added another 30.8% . Sweet!

If you already own BTO the gain should not give you a license to ignore your investment. If you ignore your money it will go away. If your are thinking of buying the stock it could be a case of buying high and selling higher.

If you want to confirm your buy, sell, hold decisions you must run the charts and dig into the data stream every single day. You need to test and confirm the reasons you originally bought the stock. Have conditions changed? Has there been a breach of the trend line? If this sounds like too much work just remember its not like digging a ditch and its your money after all!

Lets check the charts.

 

The three year chart continues to show the signs of a sustained advance. The uptrend line is still intact. The stock repeatedly tests support along the trend line and the 50 day moving average. When it has tested the 200 day moving average investors were willing to enter the fray and buy.

I would keep an eye on volume. The average daily volume over the last three months is 1.89 million shares a day. Over the last thirty days the volume has thinned out. Not alarmingly but you need to keep an eye on it.

 

 

 

 

The six month chart holds a number of features worth noting. The multiple touches on the 50 day moving average indicates investor conviction. Buying comes in on weakness. Even in August of 2011 on the breach of the trend line and 50 day moving average the shares caught a bounce off the 200 day moving average. As mentioned in the last report on BTO the MACD has been generating lots of buy and sell signals for traders.

Currently there are a few things to watch besides volume. The period of seasonal strength for gold comes to an end in early October. That could very well have an effect on the trading value of the shares. In addition it looks like BTO has gotten a bit ahead of itself at the moment. The MACD looks to be turning lower as does the RSI.

With these factors in play it would be wise to buy on a pullback and continue to watch the trend. The trend is your friend until the end!

 

Make it a profitable day and happy capitalism!

I

 

 

 

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