Archive for Commodities & Metals

CORN: Technical Analysis – Lower expected Chinese import bearish for corn prices

By IFCMarkets

Lower expected Chinese import bearish for corn prices

Lower Chinese imports after the country imposed retaliatory tariffs on US goods imports is bearish for corn. Will corn prices continue the decline?

The US Department of Agriculture’s WASDE report last week was bullish for corn: the USDA lowered its beginning and ending stocks estimates due to stronger corn export demand and ethanol usage. However with no adverse weather forecasts for US Corn Belt to provide additional support, corn prices were falling after China imposed retaliatory tariffs on US goods, including corn, following the announcement of US tariffs Friday. China’s corn imports from the US hit 757,000 tons last year totaling $160 million, up almost 240%. If China doesn’t revoke its tariffs after President Trump threatened 10% tariffs on additional $200 billion Chinese imports if China doesn’t revoke its $50 billion retaliatory tariffs on US imports. Lower export demand is bearish for corn.
Soybean stocks could hold steady with 2017/18. Ahead of Thursday’s USDA WASDE report, analysts expect the agency to show 2017/18 soybean world ending stocks at 3.299 billion bushels (down 36.7 million bushels from April), and 2018/19 world ending stocks at 3.351 billion bushels.

Corn price

On the daily timeframe the CORN: D1 has been trading with negative bias after hitting two-year high in mid-May. It has fallen below the 200-day moving average MA(200) which is leveling off.

  • The Donchian channel indicates downtrend: it is tilted lower.
  • The Parabolic indicator has formed a sell signal.
  • The MACD indicator is below the signal line and the gap is widening, which is bearish.
  • The stochastic oscillator is rising from the oversold zone, this is a bullish signal.

We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 346.70. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above last fractal high at 392.20. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (392.20) without reaching the order (346.70), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position Sell
Sell stop Below 346.70
Stop loss Above 392.20

Market Analysis provided by IFCMarkets

​GOLD Regular Bullish Divergence at W L3 Support

By Admiral Markets

Source: Admiral Markets MT5 with MT5SE Add-on

The Gold has made a big drop towards the W L3 level where it found a support. However the MACD is showing a regular divergence at the bottom. We can also see a descending trend line that marks a potential bullish breakout. The divergence will become valid if the Gold breaks and closes above the red descending trend line ( around 1275) and that could push the pair up. However a close below 1270 could make a divergence invalid and the Gold should drop towards 1266 and 1260.

W L3 – Weekly Camarilla Pivot (Weekly Interim Support)

W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)

D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)

D L3 – Daily Camarilla Pivot (Daily Support)

D L4 – Daily H4 Camarilla (Very Strong Daily Support)

POC – Point Of Confluence (The zone where we expect price to react aka entry zone)

Best wishes,

Follow Admiral Markets on Facebook – @AdmiralMarkets on Twitter – for the latest market updates.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Article by Admiral Markets

Source: ​GOLD Regular Bullish Divergence at W L3 Support


Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.

 

Aben Looks for an Instant Replay of 2017 in the Golden Triangle

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   06/19/2018

Bob Moriarty of 321 Gold discusses the drill program of an explorer in the Golden Triangle that had some high-grade holes last year.

I will keep repeating the same message. We are in the timeframe of June/July for a tradable low in gold and silver. The DSI fell below 10 but the COTs do not yet reflect the extreme of emotion required for a vibrant bull move.

For those readers not familiar with supply and demand as a factor in price, manipulation is the worse reason to invest in anything. If you believe that the only issue with why gold and silver sell for what they do is JP Morgan or the fictional “Bullion Banks” manipulating the price 24/7 you really owe it to yourself to consider investments more suitable to your investment style such as Beanie Babies or “Bitcon.”

Bitcon topped in December and has fallen 70% since then. The “True Believers” are yet to realize that over $500 billion of their money went to cliptocurrency heaven never to return but in a year or two they will begin to understand what a bubble looks like when it blows up.

Between those still tossing their pennies into the Bitcon fraud with 1,907 variations and the herd chasing the FANG stocks a lot of money that could have gone into the penny dreadfuls was off chasing a wisp of the will-o. Our beloved President Trump just started a trade war and unlike other wars, with a trade war you always know the score as soon as the first bullets fly. Everyone loses. And you can count on it giving a giant thump to the already unsteady world financial system.

So while the tiny segment of the resource followers climb the mountain to howl at the moon about how unfair markets are, those who understand that supply and demand do matter, as does market sentiment, are preparing for the next move higher. The lower the DSI and COTs go over the next month, the stronger the rally will be. This is not a good time to be whining about manipulation but a wonderful opportunity to start harvesting a crop of low hanging fruit.

As readers may remember I have started writing a book about investing in junior resource stocks. (At least I’m up to starting to think about writing a book. Seriously thinking, mind you.) The company I am writing about today makes a perfect example of why you need to trade stocks and sell when you can at a profit.

Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB) was the subject of a piece last September just before they came out with brilliant results. You should read the piece because it gives a lot of background on Aben and their three key projects. In any case Aben was drilling their Forrest Kerr gold project in the Golden Triangle and was about to release results.

A year ago the Golden Triangle was hot with Garibaldi Resources Corp. GGI up from $0.12 in June to $5.27 in October before starting a major correction to $2.10. I make the very valuable point in Nobody Knows Anything that everything goes up and everything goes down. Also if you don’t take a profit when you can, your only alternative is to take a loss.

If you bought GGI at $0.12 and rode it all the way up, you made $5.15. But if you didn’t sell, you also may have lost $3.05 on the way down. My point is that no matter how brilliant results are, you need to have a plan to sell at a profit or the market gods will bite you on the ass and hand you a loss.

Likewise, Aben Resources was at $0.09 in June of 2017 and rocketed higher, with all of the Golden Triangle sisters, to a top of $0.495 before correcting to $0.105 in November as we drifted into the seasonal low at the end of the year.

Aben chart

Results from Forrest Kerr for the 2017 drill season were as high as 18.9 g/t gold, 16.6 g/t silver and 2.2% copper over three meters. In a hole slightly deeper but in the same zone, results came up as 21.5 g/t gold, 28.5 g/t silver and 3.1% copper over six meters.

Rock value

Rock value

Aben just began a 5,000-meter drill program at Forrest Kerr to follow up on the discovery from last year they call the Boundary zone. Look for assay coming from a variety of companies in the Golden Triangle to start hitting the market in just over a month. Hopefully with a tailwind from the price of gold and silver Aben Resources will duplicate last year’s action.

Aben is an advertiser and I am biased, naturally. I participated in a PP with the company and own shares. Do your own due diligence.

Aben Resources
ABN-V $0.22 (Jun 18, 2018)
ABNAF-OTCBB 78.9 million shares
Aben Resources website.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Aben Resources. Aben Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Aben Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Aben Resources. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aben Resources, a company mentioned in this article.

Charts provided by the author.

( Companies Mentioned: ABN:TSX.V; ABNAF:OTCQB,
)

Jack Chan Unwraps Trend Reversal and Long Consolidation

By The Gold Report

Source: Streetwise Reports   06/19/2018

Technical analyst Jack Chan charts the latest moves and an ‘agonizingly long consolidation’ in the gold and silver markets.


Our proprietary cycle indicator is up.

 


The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

 


The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders.

 


Speculation is in bull market values.

 


Our ratio between gold and gold stocks has been effective in identifying the price action in both bull and bear markets.

– Since breaking down in 2011, the sector has been in a bear market with periods of consolidations before the trend resumed. Untrained eyes would jump at those consolidations as the beginning of a bull market.
– The trend reversed in early 2016 with a breakout, followed by an agonizingly long consolidation so far.

 


Silver is on a long-term buy signal.

 


SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.

 


Speculation spiked up this week along with OI; should see a pullback.

Summary
The precious metals sector is on a long-term buy signal. Short term is on mixed signals. The cycle is up. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

The Fed Is Driving Down Oil Prices

By OilPrice.com

The U.S. dollar has jumped to its strongest level in nearly a year, raising questions about how a strong greenback could act as a drag on debt and oil demand in much of the world.

The U.S. Federal Reserve announced another rate hike a few days ago, which helped edge up the dollar to a new high for the year.

The greenback has “a little room to run,” Kathy Jones, a New York-based chief fixed-income strategist at Charles Schwab, said in a Bloomberg interview. “We have seen softer numbers out of Europe and firmer numbers out of the U.S.” The U.S. Federal Reserve is unwinding its extraordinary monetary intervention after a decade of near-zero interest rates. The Fed has announced quarter-point interest rate hikes twice and is planning on at least two additional increases this year.

Meanwhile, the European Central Bank is heading in the other direction in an effort to keep sovereign bond yields from spiraling out of control, particularly after the recent political turmoil in Italy unnerved bond markets on the continent. The ECB said it would keep interest rates low through at least next summer.

The diverging policy paths for the two central banks points to a further strengthening of the dollar relative to the euro. The Bloomberg Dollar Spot Index jumped to 1,187 in early trading on Friday, the highest level since July 2017. The greenback has strengthened about 6 percent in the past two months.

Source:  Bloomberg

“(ECB President Mario) Draghi came out a little bit more dovish than people thought he was going to be. And that really caused the euro to take a dip and the (U.S.) dollar to go up, which is putting downward pressure on prices,” Phil Flynn, analyst at Price Futures Group in Chicago, told Reuters.

There are plenty of factors influencing oil prices right now, and the OPEC+ decision expected in a few days will be the single most important driver in the near-term. But the U.S. dollar is one important variable influencing oil prices. A stronger dollar helps push down prices because it makes oil, which is priced in dollars, much more expensive in much of the world.

Moreover, emerging markets now account for a majority of oil demand, and nearly all of the growth in oil demand. More specifically, additional consumption over the next few decades is expected to overwhelmingly come from China and India. In 2018, the two countries have accounted for nearly 70 percent of oil demand growth.

As a result, actions from the Fed reverberate through the oil markets. Higher oil prices act as a drag on demand, but a stronger greenback magnifies the expense in local currency.

Some governments are desperate to shield their economies from higher prices. As Reuters notes, the price of a liter of diesel in India is up 27 percent from a year ago, which, while costly, is actually subdued given the 70 percent increase in Brent prices over that time period. The Indian government is stepping in to blunt the impact of higher fuel prices, at great expense to public coffers.

The IEA said last week that oil demand is set to grow by 1.4 million barrels per day (mb/d) in each of 2018 and 2019, although that forecast was vulnerable to several potential pitfalls. “Of course, there are downside risks: these include the possibility of higher prices, a weakening of economic confidence, trade protectionism and a potential further strengthening of the US dollar,” the IEA wrote.

We have already seen some flashpoints flare up this year as a result of both higher fuel prices and currency problems, and while there are always multiple causes to such events, the strength of the U.S. dollar cannot be discounted. In Argentina, the peso lost nearly a quarter of its value relative to the dollar, forcing the government to seek a financial rescue from the IMF. In Brazil, crippling protests over high fuel prices paralyzed the country – prices were particularly painful for the truckers staging the strikes because Brazil’s currency lost nearly 15 percent of its value relative to the dollar, exacerbating the rise in oil prices.

“Currency risks are also mounting for several emerging market economies and some OECD countries,” the IEA wrote in its report. “For example, between the start of April and the end of May, the Argentinian peso has depreciated by 24% versus the US Dollar, the Brazilian real by 12.6%, the Mexican peso by 9.7%, the Russian ruble by 9.2%, the Turkish lira by 14.4%, the South African rand by 7.3% and the euro by 5.4%.”

This currency turmoil threatens oil demand growth. “These depreciations forced some countries to increase interest rates to defend their currency, which could weigh on growth in due course,” the IEA concluded.

By Nick Cunningham of Oilprice.com

Link to original article: https://oilprice.com/Energy/Energy-General/The-Fed-Is-Driving-Down-Oil-Prices.html

 

 

BRENT: Technical Analysis – Higher expected crude output bearish for Brent

By IFCMarkets

Higher expected crude output bearish for Brent

OPEC and Russia are expected to raise output to offset Venezuela and Iran supply shortfalls. Will Brent prices continue the decline?

Major crude oil producers will meet Friday to discuss crude oil production quotas. Saudi Arabia, the major oil producers of the Organization of the Petroleum Exporting Countries, is considering an output boost of 500,000 to 1 million barrels a day, according to media reports. Russia, another top world producer of crude oil, is considering expanding its output by as much as 1.5 million barrels. Higher expected output forecast is bearish for Brent.

Brent price

On the daily timeframe the BRENT: D1 has been trading with negative bias after hitting thirty-one-month high in mid-May. It had breached below the 50-day moving average MA(50) which is leveling off.

We believe the bearish momentum will continue after the price closes below the lower boundary of Donchian channel at 72.21. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above last fractal high at 77.91. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (77.91) without reaching the order (72.21, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position Sell
Sell stop Below 72.21
Stop loss Above 77.91

Market Analysis provided by IFCMarkets

Natural Gas Setup for 32% Move in UGAZ Fund

By TheTechnicalTraders.com

As we all know a picture says 1000 words, which is one of the reasons why I gravitated to trading using technical analysis. I can look at a chart and in seconds understand what price has done and is likely to do in the near future, without knowing a single thing about the company, index, or commodity. Why spend time reading news, financial statements, and other opinions when you can fast-track the entire process with a chart.

So, let’s just jump into the 30-minute chart of natural gas which shows the regular trading hours 9:30am – 4pm ET.

NATURAL GAS 30-MIN CHART WITH OVERSOLD AND TREND ANALYSIS

This chart could not be any more simple. Green bars and green line mean price is in an uptrend and you should only look to buy oversold dips. We got long a 3x natural gas ETN on May 3rd right near the dead low. After a few weeks, price action and longer term charts started to signal potential weakness, so we closed out the position for a simple 32% profit.

 

UGAZ 3X  LEVERAGED NATURAL GAS FUND

Here is 240 minute (4-hour) candlestick chart of the natural gas fund.

 

53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

By TheTechnicalTraders.com

 

Goliath Hits the Ground Running near the Golden Triangle

By The Gold Report

Source: Bob Moriarty for Streetwise Reports   06/17/2018

Bob Moriarty of 321 Gold profiles a prospect generator in the Golden Triangle.

The Daily Sentiment Indicator tumbled to a value of 9 on Friday Jun 15th. I have said for weeks that we are due a tradable low in the June/July timeframe and it would need to be below 10. So we are in the timeframe and it is below 10.

It’s just my opinion but I still see too many bulls and I suspect the low is a couple of weeks away. Look for a plunge in speculator silver and gold COTS in the weeks ahead. Since the COTs measure from Tuesday to Tuesday, this week’s values won’t reflect Friday’s drop but I would wager that the plunge on Friday torched some of the PermaBulls still looking for the latest variation of the “Gold Derivatives Time Bomb.”

You don’t have turning points higher when the open interest in silver is at a near record high. Look for lower gold and silver ahead, lower open interest and speculator panic selling coming. The DSI will mark the bottom when it comes.

Meanwhile back at the ranch, the opportunity to pick up quality juniors now on the bargain table is here. We have a new advertiser, Goliath Resources Ltd. (GOT:TSX.V) with an interesting business plan. The shares have already doubled in the last five weeks as investor interest in the Golden Triangle of British Columbia heats up.

If investors think back, GT Gold went from $0.40 to $2.76 in two months after reporting 10.67 meters of 13.03 g/t of gold right at a year ago. The stock has retraced much of the rocket higher to $0.82 but for investors swift of feet there was a wonderful opportunity to take some nice profits. That was about the same time Garibaldi shot from $0.12 to $5.27 based on little more than indications of mineralization at their E&L project in the Golden Triangle.

In early 2017 company President and CEO Roger Rosmus optioned four major projects in BC from the J2 Syndicate. The terms are not cheap but the properties are the most prospective of J2’s suite. As one of the main financiers of J2, Roger had first call on the best properties.

The Lucky Strike project has two high priority targets for Goliath for exploration in 2018. For an option on 100%, Goliath agreed to pay J2 $989,000 over a five year timeframe and a work commitment of just over $6.5 million over the same time. The payments and work commitments are back-end loaded so Goliath can take a flyer on the project for not a lot of cash.

In any case, they are cashed up for the 2018 season and have about 64 million warrants at an average price of $0.18 so potentially another $11.5 million in cash for follow up drilling in 2019.

Goliath’s 2018 drill program at the Bullseye target at Lucky Strike consists of a starter 500-meter drill program going for a 2.4 km by 3.4 km classic text book porphyry. Two of the most prolific placer gold creeks in the district surround the property. The company will be doing IP, trenching, soils samples and mapping before starting the short program.

The other hot property that is part of the Lucky Strike project is called the Kingpin. An extensive polymetallic structure in bedrock is believed to have a potential for another Eskay Creek deposit. Over an area of 830 meters by 130 meters samples have shown 14.6 g/t Au, 118 g/t Ag with zinc and lead as well. This summer’s groundwork is intended to produce targets for a 2019 drill program.

Goliath also intends a small 500-meter scout drill program at the newly discovered Copper King target within the Copperhead property. Copper King shows a volcanic breccia at surface that measures 2,000 meters by 350 meters. Results from last year measure up to 7.97% Cu and 45.4 g/t Ag.

The agreement for 100% on Copperhead calls for cash payments of just over $550,000 over a five-year period as well as a work commitment of $1.2 million during the same five years. Again, the schedule is back-end loaded to allow the most money to be put into the ground first. Naturally, success will make further financing easier and hopefully at higher prices.

Within the same Copperhead project is another property named Golddigger. It is an alteration zone of 115 meters by 95 meters within a 1,200-meter by 150-meter visible zone. Grab samples from last year from a large breccia area assayed 21.1 g/t Au, 214 g/t Ag, 3.25% Pb and 0.26% Cu. The company will do the normal groundwork of mapping and sampling this summer in order to determine the best drill targets for next year.

A natural question for investors would be, why are these properties just now being developed if they are so potential? And the answer is both simple and obvious. Glaciers and ice fields covered all four properties picked up by Goliath until recently. You couldn’t see what was underneath until climate change revealed the riches beneath. So for all practical purposes, these are brand new projects. They were hidden from view for the last 15,000 years.

Goliath is a project generator. They have no intention or ability to take a project to production. They intend to do the basic groundwork to prove the scope of the property and then either vend it to a mid-tier or major or do a joint venture. The drill programs are designed to pick the low hanging fruit and polish them up so bigger companies will see the potential and invest or buy them out.

I found Goliath to be interesting because they understand full well that they are competing for investor dollars with the other thousand or so juniors with interesting stories. They understand that if you don’t tell the story, you don’t have a story and are aggressive in bringing investor eyes to their vision and execution. Their presentation is excellent and anyone really interested in the Golden Triangle should view it.

Goliath Resources
GOT-V $0.22 (Sep 26, 2017)
GOTRF OTCBB 84.5 million shares
Goliath Resources website

Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. Goliath Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: GOT:TSX.V,
)

Oil looking oversold heading into OPEC

Article by ForexTime

There is a feeling of change within the strategy of how OPEC operates. This uncertainty has played a leading role behind the price of Oil coming under relentless pressure over the past couple of weeks, in anticipation of the cartel’s meeting in Vienna this week.

Concerns that OPEC and its non-member allies will increase production for the first time since late 2016 is a major contributor behind the sharp selling of Oil in recent weeks. Back in late 2016, OPEC famously announced production cuts in a desperate measure to reduce the volume of oversupply in the market, the major catalyst behind Oil falling from above $110 to below $30 between mid-2014 and early 2016. Speculation that OPEC could now reposition its strategy in the opposite direction has encouraged WTI Oil to decline nearly $10 in less than a month.

Anticipation of a drastic shift in OPEC’s mindset is quite puzzling to most when you consider that the previous theme heading into meetings was how much production output could possibly be cut from the market. This focus has suddenly been replaced with anxiety over how much supply could potentially be added back into the market. This suggests that there has been a rebalancing after years of an overwhelming oversupply of the commodity; equally, it could also point to underlying concerns that have been evident for some time, that some members no longer wish to comply with OPEC’s production cut deal.

Either way there is a shift in play, with previous global demand-side concerns being substituted to specific supply-side actions where the market is now expecting an increase in production. The recent price action in the Oil markets suggests that investors are confident that OPEC will announce an increase in production output, but I do not expect that it will be to the degree that articulates WTI falling $10 in less than a month. The commodity is at risk to being oversold as the OPEC get-together commences and could be in line for a rebound.

A hike in production output has already been priced in, but I am not ruling out a modest rebound over the upcoming trading sessions as the exact increase in production volume remains to be seen. There is a risk that traders are expecting a little bit too much heading into the meeting and could reshuffle their positions upon speculation that OPEC will not increase production to the amount currently being priced in by the market between 500,000 to 1 million barrels a day. After all, it did take a very long time to persuade OPEC committee members to agree to the historic production cuts all the way back in 2016, and it will not be a straightforward task to encourage a reverse in action. If the expected rise in production is less than 300,000 barrels a day, we can’t rule out the possibility that there could be a rebound in prices.

Although both Saudi Arabia and Russia are thought to be actively encouraging an increase in production behind the scenes, this will likely be opposed by Iran, Venezuela and Iraq. While none of these three nations has anywhere near the amount of influence over OPEC as either Saudi Arabia or Russia, there will be power in numbers if other producers in the cartel reject the proposal to increase supply. This potential scenario does provide some light that traders would be mistaken to consider the OPEC outcome as a “done deal”.

One other factor that investors will need to carefully monitor is whether President Trump is now attempting to exert some influence over OPEC. The United States President has used social media to attack OPEC, and has in the past repeatedly called out the cartel for “artificially” inflating the value of Oil. If the market does attempt to appreciate on the OPEC meeting’s outcome, it could encourage Trump to lash out at OPEC once again.

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Coverage Initiated on Company That Defined ‘Gold Standard of Exploration Success’

By The Gold Report

Source: Streetwise Reports   06/16/2018

A BMO Capital Markets report laid out the investment thesis for this Nevada explorer.

In a June 8 research note, Andrew Mikitchook relayed that BMO Capital Markets initiated coverage on Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) with an Outperform rating and a CA$3 per share price target “based on a conceptual-stage mine development plan and our expectation for exploration upside.” With the stock currently trading at around CA$1.61 per share, the target implies more than an 80% return.

Mikitchook outlined what’s attractive about Gold Standard Ventures from an investing perspective.

First, through exploration on its Railroad property situated on the Carlin Trend, the Nevada company has defined two gold discoveries, Dark Star and Pinion, which appear to be economic. North Dark Star, for example, shows “grades above peer heap-leach projects,” Mikitchook noted, and should be amenable to open-pit mining.

Second, “the Carlin’s rising star” has demonstrated “visibility on transitioning to development for over 100 thousand ounces per year of production,” the analyst wrote, with high grades from (North) Dark Star driving production initially. A preliminary economic assessment for Dark Star and Pinion is due out in the second half of 2018. The study could also incorporate Jasperoid Wash, depending on results from drilling currently taking place there.

Third, Gold Standard also boasts “significant exploration upside,” with its high probability of making additional discoveries, particularly since initial indications of such already exist. Additional discoveries could potentially be of “grade and/or scale similar to those driving significant gold production to the north for Barrick and Newmont,” said Mikitchook.

The company has ample room to explore on its 12-kilometer Railroad land package, the second largest in the mineralized Carlin Trend.

Additionally, the members of Gold Standard’s exploration team collectively have had great success specifically in the Carlin. Today, they’re concentrating on the Jasperoid Wash.

As for funding, the company has sufficient cash, CA$40 million, to cover its US$28.8 million 2018 exploration budget, Mikitchook reported.

Fourth, Gold Standard is an attractive takeover target based on its “exploration success combined with a proven technical exploration team in one of the top mining jurisdictions and in proximity to substantial Barrick and Newmont mines,” explained Mikitchook. In fact, two companies already have invested in the company, OceanaGold with a 15.5% interest and Goldcorp with a 9.9% stake.

The analyst opined that one of two events would likely catalyze a takeover. The first is the company making one or more additional high-grade or large-scale discoveries. The second is the company advancing the project toward a development decision by reaching permitting and engineering milestones.

In the interim, Gold Standard is expected to keep releasing drill results from Jasperoid Wash and Dixie along with infill/delineation drill results from Dark Star and Pinion.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Gold Standard Ventures. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

Disclosures from BMO Capital Markets, Gold Standard Ventures, June 8, 2018

 

IMPORTANT DISCLOSURES

Analyst’s Certification
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Company Specific Disclosures

Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to Gold Standard Ventures within the past 12 months.

Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Gold Standard Ventures within the past 12 months.

Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to Gold Standard Ventures within the past 12 months.

Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Gold Standard Ventures within the past 12 months.

Disclosure 6A: Gold Standard Ventures is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets
Limited or an affiliate within the past 12 months: A) Investment Banking Services

For Important Disclosures on the stocks discussed in this report, please click here.

( Companies Mentioned: GSV:TSX.V; GSV:NYSE,
)