US Gold Shines But Wait for the Bullish Crossover

With gold prices hovering above $750, US Gold Corporation (UXG) 4.68 -6.77%, vol: 1,740,000) is definitely one gold exploration stock you want to keep your eyes on.

Check out my updated chart for UXG:

UXG still has a number of positive fundamental and technical points in its favor:

US Gold controls one of the largest land packages in Nevada next to major gold producers.

A high percentage of insider shares is owned by Rob McEwen, the former CEO and Chairman of Goldcorp (GG): 33.10 +1.75%, vol: 8,051,170.

The chart points out that we are in oversold territory according to RSI and approaching oversold territory according to MFI.

The price is going down without a large short position.

I would wait till I see a bullish centerline crossover before adding more shares or opening a new position in UXG. When we see a crossover I am guessing UXG will very quickly rise to $6-$6.50 levels. It makes no sense to try and catch a falling knife when there are plenty of quality gold producers that I consider undervalued.

Disclosure: The author owns a position in UXG.

Comments

[ottorock:]

Yeah but the drill grades suck. Sorry if plain reality spoils your technicals. When there's no ommerical concentrations of ore, the comapny can be a JV between Madonna, Jenna Haze and Warren Buffet....it'll still suck.

Cortez is not Carlin by the looks of things.

2007 Oct 16 12:59 AM