Minera Andes Inc. - TSX: MAI - Technical Analysis Review - 6/9/2011

Minera Andes Inc. - TSX: MAI

From Homepage:

Minera Andes is a producer of gold and silver and an explorer of gold, silver and copper in Argentina. Minera Andes trades on the TSX under the symbol MAI and OTC in the US under the symbol MNEAF. Rob McEwen is the company's CEO and largest shareholder (owns 30% of the company).

This stock has made a tremendous move over the past 8 days.  Today was the most bullish day of all - Gold fell $50 from peak quickly, and MAI held its own.   The stock is over bought, so a pull back is not out of the question but I suspect we might have a little more upside before a decent correct to consolidate about previous resistance 2.40 - 2.60.  

Looking to sell 1/2 position if 2.88 gets touched.

Friday's 10% pop was due to the following news item : Update on Proposed Merger of US Gold and Minera Andes


Minera Andes is situated in Argentina and is exploring / mining the following properties.

Gold $1920 - all time high - September 6th, 2011 - Gold breaks $1900

Gold makes its move over the all time high recently set, to close to or at $1920.  This rise in gold is impacted significantly by the recent and continuing turbulence in the world.

See previous post: Geo Poltical Risk - International economic slowdown - Markets poised to open sharply lower:

Geo Poltical Risk - International economic slowdown - Markets poised to open sharply lower

It is September 6th, 2011, around 1 am and it is easy to tell this week will be extremely volatile and risk aversion might be in full swing.  The above table  from Bloomberg shows the futures of the three major US indexes.  DJIA is down 2.48%, S&P 500 is down 2.75%, and NASDAQ 100 is down 2.36%.

Why is this happened?  Well one of the reasons can be simply found by looking at the EUR/USD.

The Euro broke, stemming from a critical German vote on the legality of bailing out Eurozone members such as Greece, Portugal, Spain, etc.

An excellent summary can be found in this recent article from the Telegraph:

• German stock markets plunge 5pc ahead of crucial vote on crisis
• "The German stock market plunged to its lowest level for two years - shedding 5pc of its total value in one day - amid fears of the apparent impotence of European leaders in the face of the debt crisis."

 Not to mention that Greek 2 year bonds are Yeilding over 50% -  From Bloomberg: GGGB2YR:IND


Middle east is also heating up, Turkey will be challenging the Gaza blockade in the UN while in the same week working with NATO to build a missile defense system for Europe. 

Along with the Eygpt/Israel row and Syria's continuing uprising.

The fundamental and technical picture looks horrible for the markets and it is expected that without further stimulus the market will pull back substantially over 6 months.  However, more easing will contribute significantly to a seemingly parabolic move gold and silver.  Gold is close or at its all time high as I conclude this blog post:

Wow looks like it did or almost touched 1920... that is an all time high folks.