“I may sound like a broken record in saying that I’m still bullish on gold, but sometimes you need to make hay while the sun shines,” Michael said.

“Resolute Mining (RSG) is a gold producer based in Africa.

“One of their mines is in Mali, and this is the reason why the share price took a sharp hit in November.

“A number of executives were detained for tax payment discrepancies and suddenly sovereign risk was an issue again.

“The issue was resolved and now it seems that the shares are happy to follow the gold price higher.

“In terms of the chart, after dropping significantly in November, RSG then spent the next few months forming a base.

“It broke out of this base in April, did a retest and then continued to rally.

“The past several days has seen it consolidate again in the form of a bull-flag (see the diagonal blue lines in the chart below).

“The trend looks positive for Resolute Mining (RSG) and current levels are a buying opportunity,” Michael said.

Resolute Mining (RSG)