Gold Resource Corp. (GORO) carries the risk common in exploration-stage miners, but has a bullish chart pattern developing and significant upside price targets, writes Gary Tanashian of BiiWii.com.
Gold Resource Corporation (GORO), an exploration-stage company, engages in the exploration for and production of gold, silver, precious, and base metals, including copper, lead, and zinc, primarily in Mexico.
It holds interest in six properties, including the El Aguila property, the Las Margaritas property, the El Rey property, the Solaga property, the El Chamizo property, and the Alta Gracia property in southern state of Oaxaca. The company was founded in 1998 and is based in Denver, Colorado.
After having spent 2011 in a little cyclical bear market, GORO has gone MACD-positive (a bullish signal) with slower TRIX near confirming. But RSI is at support and needs to hold or else GORO would lose support at $23, which would likely bring on a date with the lower line of a projected symmetrical triangle.
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All in all, were I a potential GORO buyer, I'd be waiting to see how it handles current support before buying or adding. This pattern could ultimately target $42 or more down the road.
Be aware that gold exploration companies do not always correlate well with the actual price of gold because exploration has so many costs associated with early-stage development that are unrelated to the price of gold itself.
By Gary Tanashian, contributor, BiiWii.com
