There are two big reasons why White Gold Corp. (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) looks like an attractive speculative play here. One is that it is sold down to strong support at what looks like a cyclical low. The other is that it is just beginning an active, fully funded drilling season on its Yukon properties.
The 10-year chart shows us most, if not all, of the history of the stock.
On this chart, we can see that after a spectacular runup in late 2016 and early 2017, it has basically been in a slow bear market and looks like a ball that is dropped to the ground and bounces less and less with passing time, to the point that it is stilled, which is where we are at now, and the convergence of the big trendlines shown together with what looks like basing action of recent months is creating the potential for a breakout above the top line that would probably lead to a big move, with the catalyst for such a development, of course, being the drilling program mentioned above that has just started up. If it did make a significant discovery, we could see a big spike leading to large percentage gains.
On a much shorter time horizon, we are at a good entry point now, too, for on the 6-month chart, we can see that the price has been beaten down substantially from its April high to become oversold at a significant support level with several other factors pointing to a reversal to the upside soon from here.
One is the convergence of the downtrend channel, making it a possible bullish Falling Wedge, another is the way that volume has generally dwindled as it has headed lower, indicating an ebbing of selling pressure, and lastly, the MACD is now poking above its moving average with the contraction of the MACD histogram (bars) back to the zero line and even a little above it increasing the chances of a rally developing.
White Gold is therefore regarded as an attractive speculative junior play here, and this looks like a good place to buy it as interest is likely to increase as the drilling season progresses, and clearly, it is better to buy it before good drilling results are announced even if it means biding your time for a while between when you buy it and some good news is forthcoming.
Those who think like us will probably buy in this area and that should support the price here.
White Gold Corp.'s website.
White Gold Corp, WGO.V, WHGOF on OTC, closed at CA$0.32, $0.245 on June 22, 2023.
Originally published on clivemaund.com on June 23, 2023, at 10:30 am EDT.
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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.