Scotgold - the future20 hours agoOpinion on ScotGold...

Scotgold - the future
20 hours ago
Opinion on ScotGold (LSE:SGZ)

Report created 22 March 2012 at 11:00

Currently trading at 5.25p

We decided to take a look at this from a trend perspective as there seems to be a continual parade of TV slots mentioning this company and their efforts to extract precious metals from the Scottish mountains.

At first glance, the chart is encouraging simply from an immediate long term view. When we see a share getting higher highs and higher lows in the period following its launch, this always bodes well for the future.

From a chart perspective, a pivot level has formed at 5.95p and we'd be inclined to expect big things from this chart should the share price close ABOVE the pivot level in the coming months. We tend to set great store with these levels as generally, the 3rd break of a pivot is the one which sticks.

What does this mean for Scotgolds share price?

Posted on III.CO.UK by lukeoleo

http://precogz.com/blog/

We can 'prove' an initial target of 8.9p with a best case potential 'on the day' on 9.2p. Whilst neither number presents itself as a 'multi-bagger' which is unusual for a gold company, it is probably a company worth paying some attention to, due to recent news reports which suggest they've also established the presence of another precious metal.

This could easily result in a 'game changing' re-evaluation of the share price and create a substantial upward surge beyond anything trend logic permits.

And of course, where are the dangers? If the price CLOSES below the red line on the chart, a reasonable assumption would be the long term rising cycle is coming to an end. Visually, this looks unlikely.

In summary, should Scotgold CLOSE above 5.95p, this is probably worth watching as movements could be quite firm.