Gold Charts Pointing to A Bullish 2020; How Alice Queen is Preparing to Ride the Wave?

  • Dec 30, 2019 AEDT
  • Team Kalkine
Gold Charts Pointing to A Bullish 2020; How Alice Queen is Preparing to Ride the Wave?

Bought as a luxury good and investment, gold is a safe haven that is impervious to the actions of centralised institutions, consequently protecting investors during crises. Gold is used as a portfolio diversifier, i.e. it reduces the overall risk in a portfolio, thanks to its safe-haven status. As price of the yellow metal moves in a different direction from equities and other assets, it is considered as a store of value.

XAUAUD Weekly Chart (Source: Thomson Reuters)

The penultimate year to the end of this decade has been a good year for gold. Gold entered the year after a steady consolidation in 2018. Post the breakout in February 2019, gold prices have been on a resounding uptrend as witnessed on the weekly chart above. Gold prices rallied to comfortably cross the psychological mark of $2,000 in June and went on to make a multiyear high of $2,322 in September. Gold has delivered a return of 19% in 2019.

On the weekly chart, the Australian-dollar denominated gold spot is forming a bullish flag (potential), which is a bullish pattern; however, the pattern is yet to give confirmation. For now, the prices are trading around the resistance line of the pattern, and a break above the same with decent volume would confirm the same.

Post a decent rally, prices usually correct over the profit-booking activities initiated by the buyers, which somewhat reduces the prices of an asset. If the long-term of any underlying asset is positive, investors, who miss out the initial rally wait for such correction to initiate a buy, which leads to a pattern such as bullish flag on charts.

As on 30 December 2019, the gold prices are trading above the long-term exponential moving average of 200 days, which is currently at $1,799.28, and the short-term exponential moving average of 50 days, which is at $2,401.68. The 50-day exponential moving average crossed the 200-day exponential moving average from below to establish a positive cross.

It could be seen on the chart above, that the weekly candle penetrated the 21-day exponential moving average, which reflects that considerable volatility exists in gold, and investors should keep a margin of 1 to 2 per cent before confirming the potential bullish flag.

Furthermore, the weekly chart is showing decent recovery in gold prices post a sell-out, with steady volume, which further reflects that bulls still hold interest in gold.

As gold charts are pointing towards a bullish 2020, it is good news for companies operating in the related space. One such company is Alice Queen Limited (ASX: AQX), an Australia-listed advanced gold explorer, which is developing a number of gold and copper exploration and mining opportunities, with major focus on flagship Horn Island gold project in Queensland and Yarindury and Mendooran projects in New South Wales.

To Know More about AQX Projects: Do Read Acquaint Yourself With Horn Island And Yarindury Projects Of Alice Queen

It seems that Alice Queen is preparing well to ride the wave while progressing with its project portfolio in Australia.

Below are some of the major project developments by the company during the year 2019.

· In June 2019, the company executed an agreement (earn-in and joint venture) with gold miner St Barbara Limited (ASX: SBM), targeted towards exploring and developing the flagship project.

· For the flagship gold project, Horn Island, conducted airborne geophysical survey and surface soil sample programs during the year, identifying high priority targets for follow up, with some holding the scale to potentially host a large gold mineralised system.

Do Read Alice Queen Announces Encouraging Results for Horn Island Geochemical Sampling Program, Stock Up Over 17%

· Thanks to a significant discovery nearby by Alkane Resources Limited, the company announced enhanced prospectivity of the Yarindury and Mendooran projects in the North Molong Belt.

· Alice Queen has also recommenced drilling activities at the Yarindury Project, New South Wales. For a detailed look, pls click here.

· To obtain access to the Goonoo Goonoo State Conservation Area for exploration drilling, AQX lodged the requisite documents and applications with the concerned authority. Eight of the targets generated at Mendooran occur within the area.

AQX Stock Performance

Alice Queen was listed on the Australian Securities Exchange in September 2004. The stock settled at a price of $ 0.026 on 30 December 2019, with the market capitalisation of the company at $ 22.68 million. The stock of the company delivered a return of 55.56% on a year to date basis and 154.55% in the last six months.

Alice Queen seems an attractive player in its market, backed by significant progress of key projects and excellent returns delivered over the past few months.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

XAUAUD Weekly Chart (Source: Thomson Reuters)

The penultimate year to the end of this decade has been a good year for gold. Gold entered the year after a steady consolidation in 2018. Post the breakout in February 2019, gold prices have been on a resounding uptrend as witnessed on the weekly chart above. Gold prices rallied to comfortably cross the psychological mark of $2,000 in June and went on to make a multiyear high of $2,322 in September. Gold has delivered a return of 19% in 2019.

On the weekly chart, the Australian-dollar denominated gold spot is forming a bullish flag (potential), which is a bullish pattern; however, the pattern is yet to give confirmation. For now, the prices are trading around the resistance line of the pattern, and a break above the same with decent volume would confirm the same.

Post a decent rally, prices usually correct over the profit-booking activities initiated by the buyers, which somewhat reduces the prices of an asset. If the long-term of any underlying asset is positive, investors, who miss out the initial rally wait for such correction to initiate a buy, which leads to a pattern such as bullish flag on charts.

As on 30 December 2019, the gold prices are trading above the long-term exponential moving average of 200 days, which is currently at $1,799.28, and the short-term exponential moving average of 50 days, which is at $2,401.68. The 50-day exponential moving average crossed the 200-day exponential moving average from below to establish a positive cross.

It could be seen on the chart above, that the weekly candle penetrated the 21-day exponential moving average, which reflects that considerable volatility exists in gold, and investors should keep a margin of 1 to 2 per cent before confirming the potential bullish flag.

Furthermore, the weekly chart is showing decent recovery in gold prices post a sell-out, with steady volume, which further reflects that bulls still hold interest in gold.

As gold charts are pointing towards a bullish 2020, it is good news for companies operating in the related space. One such company is Alice Queen Limited (ASX: AQX), an Australia-listed advanced gold explorer, which is developing a number of gold and copper exploration and mining opportunities, with major focus on flagship Horn Island gold project in Queensland and Yarindury and Mendooran projects in New South Wales.

To Know More about AQX Projects: Do Read Acquaint Yourself With Horn Island And Yarindury Projects Of Alice Queen

It seems that Alice Queen is preparing well to ride the wave while progressing with its project portfolio in Australia.

Below are some of the major project developments by the company during the year 2019.

· In June 2019, the company executed an agreement (earn-in and joint venture) with gold miner St Barbara Limited (ASX: SBM), targeted towards exploring and developing the flagship project.

· For the flagship gold project, Horn Island, conducted airborne geophysical survey and surface soil sample programs during the year, identifying high priority targets for follow up, with some holding the scale to potentially host a large gold mineralised system.

Do Read Alice Queen Announces Encouraging Results for Horn Island Geochemical Sampling Program, Stock Up Over 17%

· Thanks to a significant discovery nearby by Alkane Resources Limited, the company announced enhanced prospectivity of the Yarindury and Mendooran projects in the North Molong Belt.

· Alice Queen has also recommenced drilling activities at the Yarindury Project, New South Wales. For a detailed look, pls click here.

· To obtain access to the Goonoo Goonoo State Conservation Area for exploration drilling, AQX lodged the requisite documents and applications with the concerned authority. Eight of the targets generated at Mendooran occur within the area.

AQX Stock Performance

Alice Queen was listed on the Australian Securities Exchange in September 2004. The stock settled at a price of $ 0.026 on 30 December 2019, with the market capitalisation of the company at $ 22.68 million. The stock of the company delivered a return of 55.56% on a year to date basis and 154.55% in the last six months.

Alice Queen seems an attractive player in its market, backed by significant progress of key projects and excellent returns delivered over the past few months.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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