“With the price of gold taking a breather here, I thought it would be worth looking at another buying opportunity with a gold stock,” Michael says.
“Gold looks like it can continue to head higher over time because of central bank buying, falling interest rates, and concerns over global debt.
“Genesis Minerals is a $3.5 billion gold explorer based in Western Australia.
“It’s a stock I’ve recommended on a couple of occasions last year due to its strong and sustainable uptrend.
“When it comes to buying a stock in a strong uptrend, it’s worth waiting for a cooling off in the share price instead of trying to chase it.
“We now have this with Genesis Minerals (GMD).
“After its share price ran particularly hard in January, the stock then traded sideways to consolidate the move.
“This flat consolidation is a sign that there remains very good buying support here and once the short-term profit taking has finished, it will be ready to move higher again.
“GMD is a buy here as it is just a matter of time until it breaks higher and resumes its uptrend,” Michael says.
Genesis Minerals (GMD)
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