Looking at a Gold Miner

A couple of weeks ago I made a post stating that I think the price of Gold was heading lower. Gold did break below support, but then quickly rebounded and headed back up towards the high end of it's range. This made me rethink my stance on Gold. It's important to realize when your wrong (or possibly to early). I still think Gold could breakdown below support, which I pointed out on January 7th, but at this point I decided the better play would be to look for some long positions in gold miners. Below is a chart from Finviz (a great site by the way) that shows the performance of Gold related stocks.

They had a nice move up from their November lows, consolidated, and now look poised to move higher. A few of the better are now above their 150 day MA. One of the smaller ones i'm folling is DRD Gold Limited. It has a nice level of resistance that was prior support late last summer. From the middle of November to the middle of December DROOY had a nice move up, then consolidated right under resistance. Look for a breakout on increased volume.

DROOY