The news last Friday that US employment grew at the slowest pace in nearly 6 years put the prospects of June rate rise off the table in the US and put a rocket under the gold price. Our advice to clients 5 weeks ago to get out of Evolution Mining (EVN) for a 37% return and getting into St Barbara (SBM) paid off with SBM now up 23.3% since that recommendation. I now have my sights on Northern Star Resources (NST). We are seeing a textbook trend in NST as it continues to head higher and higher.
The stock had a couple of flat corrections in 2015 and you will notice on the chart that they sat nicely on top of the previous highs, which is a positive sign. Then the correction earlier this year managed to create a bit of space to the 2015 high which suggests a pickup in momentum now. The recent pullback from the last few weeks also created a gap to the previous peak on the chart. Not only that, but these corrections are getting smaller and smaller in time. This all bodes well for NST. We cannot pinpoint price targets from here but any slight dips should be bought as NST is likely to accelerate well into the $5’s over coming weeks.
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