Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Great Entry Point as Gold Co. Readies To Break Out of a Giant Saucer Base.
Contributed Opinion

View Important Disclosures for this Article
Share on Stocktwits


Technical Analyst Clive Maund takes a look at TRX Gold Corp.'s 6-month and 16-month charts to share his view on the company.

This looks like a great point to buy TRX Gold Corp. (TRX:NYSEAMERICAN) following its smackdown of recent weeks, which is largely due to the innocuous reason of a broad retreat by the sector that is thought to have been due to groundless jitters caused by the debt ceiling circus, which always seems to play out the same way.

On the 6-month chart, we can see that the sharp reaction of recent weeks looks like a normal reaction within an ongoing larger uptrend, and now that the reaction has taken the stock from overbought to oversold and brought the price down to quite strong support at its rising 200-day moving average and the lower boundary of the larger uptrend channel, it should now reverse back to the upside and today's quite large bullish candle which is a completing a "bullish engulfing pattern" is a sign that this is happening.

Those interested should note that while a bullish "dragonfly" candle appeared on the chart of the U.S. traded stock about a week ago, on the same day, a prominent "bull hammer" appeared on the Canadian chart, on which a small Double Bottom appears to be completing.

TRX Gold, formerly Tanzanian Royalty, is the creation of "Mr. Gold" Jim Sinclair, and it has been working steadily to bring to production the giant Buckreef gold mine in Tanzania, which is now in production and increasing its resource base and should thus be of great interest to those looking to buy solid gold stocks ahead of the massive PM sector bullmarket that looms as the dollar is dethroned as the world reserve currency and ultimately collapses.

It is thus most interesting to observe that the stock is poised to emerge from a giant Saucer base pattern shown on our 16-month chart below (this time period is selected to excise the freak move that appears on the chart early in 2021) and this being so the reaction of recent weeks back toward the Saucer boundary is viewed as presenting a golden opportunity to pick up this solid gold stock ahead of the major breakout expected before much longer.

TRX Gold's website.

TRX Gold Corp. closed for trading at $0.47, C$0.63 at 2.30 pm EDT on June 1, 2023.

Originally published on on June 1, 2023, at 3:10 pm EDT.

Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. 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. 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.
  2.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.

For additional disclosures, please click here. Disclosures

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 t

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe