CNH needs to have continued success in its drilling operations to kick up production and it also needs the price of natural gas to move higher.
On a fundamental basis YNG has yet to produce enough gold to generate a profit and as a results will have to continue to issue shares to fund its programs. Selling shares at $0.275 is certainly not the price that management wanted but its what the market was willing to pay.
The 7% yield on distributions may keep you invested just watch $26.00 like a hawk. If it breaks below that level there’s not much support till $22.50.
It appears that there is some support at $11.50. But with a death cross starting to form and the sector not enjoying the summer and early fall on a seasonal basis it might be wise to consider cutting your losses and preserving capital for a re-approach later in the year.
Right now the MACD isn’t signalling a change in momentum to the upside so you’ll have to be patient. Gold enjoys a period of seasonal strength from mid July to early October ,according to seasonality expert Brooke Thackray, so the waiting may soon be over.
Right now the questions are when and how will FT finance its equity share of development and will BNP Paribas secure the loan package it needs.
The MACD clearly signaled a pull back in late April. It looks like CLL is on its way to retesting support on its 200 day moving average which should it hold provide an interesting entry point for a potential trade towards $1.50.
