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Gold Stock Looking Ready to Reverse to the Upside
Contributed Opinion

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Technical analyst Clive Maund charts Sitka Gold and explains why he sees it as a speculative buy.

Sitka Gold, Drilling at Alpha Project

Sitka Gold Corp. (SIG:CSE; SITKF:OTCQB; 1RF:FSE) is suspected to be at a low here, rather like Azarga Uranium was a few days back when we bought it ahead of its sharp rise on Friday. On its latest 6-month chart we can see that it has dropped substantially from its April peak, but latterly the rate of decline has slowed as it has approached and arrived at support at its February lows. Positive factors suggesting a high probability of it reversing to the upside here include recent new lows not being confirmed by momentum (MACD) and the relatively strong Accumulation line which has held up very well on the decline. With drilling underway at its RC gold project in the Yukon and drilling due to begin soon at its Alpha gold project in Nevada there exists the potential for positive news to get the stock moving higher, and this against the background of an improving outlook for gold due to mounting inflation.

The 42-month chart shows us the complete history of the stock on this market and the main point to observe on this chart is the big divergence between the Accumulation line and the On-balance Volume with the former strong and the latter weak. When this sort of divergence appears we go with the former as being more reliable because Accumulation is calculated on an intraday basis whereas On-balance Volume is calculated on an end of day basis and is therefore regarded as less reliable.

Sitka is therefore regarded as a speculative buy here. Even if the support at the 12 cent level is breached it is thought likely that it will snap back quickly. Sitka trades in reasonable volumes on the U.S. OTC market.

Sitka Gold Corp website.

Sitka Gold Corp., SIG.CSX, SITKF on OTC, closed at C$0.125, $0.105 on 2nd July 2021.

Originally posted on at 11.50 am EDT on 4th July 2021.

Clive Maund has been president of, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.


1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Sitka Gold and Azarga Uranium. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sitka Gold and Azarga Uranium, companies mentioned in this article.

Charts provided by the author. Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

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