The new trend in GOLD Gold and Golds stocks have been firing...

The new trend in GOLD


Gold and Golds stocks have been firing lately as more and more investors are now seeking "safer" and less "riskier" investments for their cash.
With the recent world wide market corrections seen lately, it appears that a new up-trend is starting to emerging in the price of Gold.




Gold, like any other commodity that continues a sustained price increase will eventually see investors taking on more risk and flowing more money further down the "Stock Money-Flow Ladder"

Investors will first move into,
1. - Major producers
2. - Newer producers
3. - Developers
4. - Explorer/specs

With each step down the ladder more risk is applied.
Investors will likely see bigger (in percentage term) gains to compensate for the additional risk the further they go down the ladder.


Under normal market conditions and as the new commodity sector becomes "Hot", the money flow would naturally continue down the ladder and into more "riskier" type plays as the underlining commodity price increases.

The present market conditions are far from normal and there's also a strong possibility that we could be witnessing more than just a market correction..

Majority of investors will now be risk averse and will be looking for the "safest" Gold plays so I believe that the "money" may not be willing to flow into more riskier Gold plays. (just yet)

Under the current market conditions it's highly likely that the "money" will be restricted to the first 2 on the ladder, Major & Newer producers (and possibly advanced developers with secured finance) as they are and will be producing strong cash flows.


Currently we are seeing the biggest gains from the major Gold producers who are viewed as the "safest" Risk/Reward with a predictable cash flow but usually with a limited "Growth potential".

I've noticed in the last week or so that money is now starting to flow (in a substantial way) into the newer "Up & Coming" Gold producers with the best of the bunch breaking out of their recent down trends.



IMO one of the best new producers that looks set for a big re-rating this year and next is DCN.

Here are a few slides from their most recent presentation.

https://www.daciangold.com.au/site/PDF/1620_0/DacianGoldInvestorPresentationOctober2018





DCN - 1 hourly Chart


Ok, you need to use your imagination here a little

DCN is currently forming a Bull Flag pattern.
Price had been in an accumulation phase for about a month before developing into a small inverse Head & Shoulders pattern.
The pattern is shown when price did a small "Shake out" of potential weak hands before rising up dramatically on decent volume.
(I've noticed this pre up move "shake out" on a lot of stocks recently)

I have found that DCN is trading inverse to most other Gold stocks, meaning it goes up when the rest consolidate or go down.

Today it looked to be in consolidation again whilst most of the other Goldies made a decent move up.