Capricorn Metals (CMM) is a $2 billion gold explorer and producer based in the Pilbara.

“They’re a low cost producer with no debt and are leveraged to any increases in the gold price,” Michael said.

“I have spoken previously about why gold should do well over the next few years.

“From a charting perspective, the gold price has broken to new highs in the past week, and this should therefore be the start of a major rally.

“In terms of CMM, the shares spent the past year forming a symmetrical triangle.

“This is a consolidation in the share price, and it was just a case of waiting for an upside break, and therefore a buying opportunity.

“We have now finally got that clear breakout (circled) and it is highly likely that this turns into the new uptrend.

“Current levels are a buying opportunity.

“Initial stops can be considered just under $4.65,” Michael said.

 Capricorn Metals (CMM)

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.