Chart of the Day: Condor Gold

It may be said that as far as the recent price action of Condor Gold is concerned, only Randgold Resources has really put the performance here in the shade. On the basis that “Elephants don’t gallop”, this may be a situation to consider for small cap fans of precious metals.

Condor Gold (CNR):  Target as High as 100p Plus

The set up on the daily chart of Condor Gold is all the more encouraging given the “melt up” we are currently seeing for the underlying metal; but it is all the more satisfying that the backdrop to what is going on for this bullish situation has been so long in the making. This can be seen from as long ago as the January gap through the 50 day moving average, now at 60.47p,  right at the bottom of the range, something which I refer to playfully as a “rocket launcher” set up. The reason for this is the power one very often subsequently sees in moves from such gaps. The position now is that there has been decent progress within a rising trend channel in place from as long ago as the beginning of the year, with the view now being that provided there is no break back below May/June support at 55p we could be treated to further significant upside. This could be as high as the 2016 price channel top at 110p over the next 3-4 months. Only cautious traders should wait on dips towards the 55p zone to improve the risk/reward of going long before taking the plunge on the upside.