Good Morning!
If I have to explain what Gold and Silver Mining of Nevada Inc. (CJTF) does or where it does it, this trade is probably a little “advanced” for you.
CJTF is working the Nevada precious metals belt on the promise of what looks like 26 TONS of gold and 7,000 TONS of silver. (Read more)
Add up the tonnage at today’s prices and CJTF represents a truly mind-melting mountain of cash -- and check out that chart:
What strikes my fancy here? First and foremost, how often do you get a shot at a mountain of gold at a molehill level of barely $0.01?
Yeah, CJTF has 330 million shares outstanding, but all of them together only add up to about $4 million right now -- maybe 1/10 ton of bullion!
That ratio of market cap to ore estimate is obviously compelling, but CJTF is giving me the technical wink that says we may not get this price forever.
Here’s what I think makes CJTF a ticking alarm clock ready to ring:
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It’s hard to beat that gold mountain. CJTF has two projects in Nevada: one with 9,000 ounces of bullion “estimated” and a behemoth boasting 842,000 ounces. Add it up and multiply by $1,300, I get a 10-digit play! (Read more)
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Meanwhile, the CJTF technicals looks hot to bounce off that long base. The MACD just crossed above signal yesterday afternoon, which is a classic “trend change” flag for the bulls. And yet the RSI is still close to oversold!
Bottom Line: If there’s a gold miner out there with a bigger imbalance between resource and share price, I beg you to clue me in!
CJTF has spent a few weeks getting its chart in position for its next move. Personally, I think it looks like a rounded bottom, but today will decide.
Either way, with the volume bars surging in the last few days, “resistance” seems a long way from here -- the 200-day line is still up at $0.027!
That tells me CJTF has plenty of room to play if the market cooperates and gold prices take just a wiggle in the right direction.
But the bell has run, so let’s get moving!
See you soon!
- Papa Roach
