F E B R U A R Y / M A R C H 2 0 2 0
www.resourceworld.com 9
gains as the year progressed until it found
support at the aforementioned level of 540.
But what should have been just another
day of year-end tax loss selling and port-
folio rebalancing suddenly turned very
interesting.
What made December 13 so signifi-
cant was that the market gapped 3 points
higher at the open from the previous day's
close, and then, after consolidating near
the gap level for most of the trading day,
suddenly surged another point-and-a-half
higher in the last half-hour of the day.
Now a 3-point gap and a late day rally of
1 ½ points may not catch the attention of
most market observers, but after watching
markets for many years, I taught myself to
'Mind the Gap' as it might prove to be sig-
nificant. You see, gaps usually fill in during
the day to facilitate the trades that would
have normally happened if there hadn't
been a gap, and markets tend to consoli-
date on Friday afternoons as traders sell
to lock in profits or reduce market expo-
sure going into a two-day unpredictable
weekend. This gap held and didn't fill in.
Could this have been the day that signaled
the next bull market in junior resource
securities?
Looking at the Venture Exchange a little
deeper – and although the year overall
was certainly disappointing – the base
building for the last 2 1/2 months was
encouraging in that the exchange man-
aged to build another level of support at
the previous and current year's lows. This
now gives the Venture not only a monthly
but a yearly support level from which to
hopefully rise.
Technical charting theory suggests that
LEFT: We are seeing more diamond drill
core as more junior explorers complete
financings and head for the field.
❝ A CHANGE IN SENTIMENT
TOWARDS RESOURCES AND
RESOURCE STOCKS IS IN THE
AIR. THESE CHANGES COULD
WELL BE DYNAMIC AND TAKE
THE RESOURCE MARKET TO
HEIGHTS NOT SEEN IN MANY
YEARS. AS ALWAYS, INVEST
WISELY AND TAKE PROFITS
ACCORDINGLY…❞
