InvestMacro

By The Gold Report – Source: Peter Epstein for Streetwise Reports   05/27/2020

Peter Epstein of Epstein Research explains why he is “bullish” on Falcon Gold Corp., with five Canadian projects targeting mostly gold, but also silver, copper, cobalt, nickel and platinum group metals.

Note: Unless stated otherwise, all $$ = US$. Gold = Au, silver = Ag, copper = Cu, cobalt = Co, nickel = Ni, palladium = Pd, platinum = Pt.

Gold producers are benefiting from a significant increase from ~$1,200/ounce nine months ago, to an eight-year high of $1,788/ounce in March, and ~$1,750/ounce in mid-May. Yet, gold bugs say we’re still in the early stages of a gold bull market. Pundits and analysts are moving price targets ever higher due to the shocking economic fallout and massive debt issuance/money printing resulting from COVID-19.

What might past bull markets say about today’s gold market?

In the four largest historical bull markets since 1970, the average inflation-adjusted gain has been +237% over an average 51.5-month period, for an annualized gain in each period of +36.1% (see chart below).

Notice that in today’s rally (the current bull market), the price is up +46% from September 2018 to May 20, 2020 (~20 months). With this in mind, consider the following possible scenario between now and the end of next year.

If one were to extend the current bull market from 20 to 51.5 months (to December 2022), and assume the average historical 36.1% CAGR (compound annual growth rate), the gold price would hit $4,514/ounce. Or, instead of using the four most robust bull markets of the past 50 years, consider the top two of the past 20 years.

In those more recent cases the average annualized gain was 22.5%. If gold were to increase by +22.5%/year from September 2018 to December 2022, it would reach $2,873/ounce. Well-respected Canadian economist David Rosenberg of Gluskin Sheff sees $3,000–$4,000/ounce possible within a few years. Last month, Bank of America forecasted $3,000/ounce within 18 months.

Importantly, the current gold price is already quite strong

Do investors need $2,873 to $4,514/ounce for juniors with good quality management/technical teams and high-quality projects in safe jurisdictions to be multi-bag winners? Of course not. Readers are reminded that most preliminary economic assessment (PEA), preliminary feasibility study (PFS) and bankable feasibility study (BFS) reports delivered over the past seven to eight years pegged long-term gold prices at between $1,100 and $1,300/ounce.

A company I’m bullish on is Falcon Gold Corp. (FG:TSX.V), a junior miner that owns or controls exciting brownfield and greenfield opportunities in Canada. The company has near-term catalysts that could turn its CA$0.065/share stock into something much greater within a matter of months. Falcon is fully funded for a nine-hole diamond drill program at its flagship project.

Shares are tightly held, including by largest holder CEO Karim Rayani. Rayani has been an active buyer in the open market. With a market cap of CA$4 million, this is a high-risk, high-return, high-grade gold story with near-term catalysts. In other words, exactly what investors with the ability to stomach high risk are looking for.

A funded (recently expanded to nine holes) drill program is well underway at the company’s Central Canada gold and polymetallic project, ~20 km SE of Agnico Eagle Mines Ltd.’s (AEM:TSX; AEM:NYSE) Hammond Reef gold deposit, (Measured and Indicated resource of 4.5 million [4.5M] ounces Au). Central Canada hosts a past-producing mine with a 40-meter shaft and a 75-tonne/day mill.

Current drilling on flagship project offers near-term catalysts

While Hammond Reef lies on the Hammond fault, the Central Gold property lies on a similar major structure, running >10 kilometers (10 km) along the Quetico Fault. Contiguous with the Central Gold project, the English Claims Option reported an interval of 0.64% Cu, 0.15% Co, 1.1% Zn and 0.35 g/t Au over a true width of 40 meters (40m).

The first three shallow drill holes from the current program at the Central Canada project intersected mineralization over large intervals. One of the cores had visible gold in it. The first hole—designed to intersect the gold-bearing zone 20 meters west along strike of the historic producing shaft—intersected the zone from 33.5 to 79.8m (46.4m width). Note: true widths unknown.

The second intersected the zone a further 70 meters west, along strike of the shaft, from 26.9 to 62.2m (35.3m width). The third hit the zone 155m west, along strike, of the shaft from, 26.8 to 59.8m (33.0m width). Assays on these three holes are expected this month. The results will inform the drilling of the next six holes.

Historical drilling by multiple operators dates back decades. In 1965, drilling returned several winners, including 44 g/t Au over 2.1m, and 37 g/t over 0.6m. In 1985, 13 holes included a 1.2m interval of 27.5 g/t Au and 4.0m of 7.1 g/t. In 2012, a wider interval, 23.3m of 1.8 g/t, was delineated.

Red Lake mining district of northwestern Ontario

In addition to the Central Canada project, other Falcon properties could see drilling this year. There’s a “tonne” of attention on the Red Lake mining district as Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX) released yet another important drill hole at its blockbuster Dixie project. Their latest reported hole went much deeper than previous efforts and hit an intercept of 68.6 g/t over 2.7m from 1,009m downhole.

Falcon has two gold properties in the Red Lake District, Camping Lake and Bruce Lake. International Montoro Resources (IMT:TSX.V) has an option to earn a 51% interest in the Camping Lake property and can acquire a further 24% interest (for a total of 75%) for CA$500,000.

The property consists of five claims comprising 109 cell units (approx. 2,250 hectares/5,560 acres), ~20 km south of Great Bear’s discoveries at Dixie Lake, and ~8 km south of BTU Metals Corp.’s (BTU:TSX.V) base metals targets.

Bruce Lake adds an additional ~3,460 acres to Falcon’s Red Lake District portfolio. The project contains excellent targets for both Red Lake-style gold mineralization and gold-bearing base metal prospects. A combined ~3,650 hectares, for both Bruce and Camping Lake, equates to roughly 20% the size of BTU Metals’ Dixie Halo project. BTU Metals has a market cap of CA$20M.

Wabunk Bay Platinum/Palladium/Base Metals Project

At its ~1,192-hectare Wabunk Bay platinum/palladium/base metals project, also in the Red Lake District, Falcon hopes to follow up on a promising field program from last year.

Grab samples from 2019 assayed up to 760 parts per billion (ppb) Au, 0.272% Ni, 0.478% Cu, 171 ppb Pd and 221 ppb Pt. Select areas around Wabunk Bay are currently being explored by Eric Sprott-backed Argo Gold (ARQ:CSE), which has reported ultra-high grades, such as 132 g/t Au over 1.8m.

Spitfire and Sunny Boy Claims in British Columbia, Canada

The Spitfire/Sunny Boy claims, totaling 502 hectares, are ~16 km east of the town of Merritt in south-central British Columbia. Spectacular ultra high-grade gold values were reported on Falcon’s newly secured property, including 124 to 127 g/t Au, (midpoint of 4.0 ounces/ton) and 309 to 514 g/t Ag over 0.9m. On the Master Vein, an extreme, ultra, high-grade gold value of 50.5 ounces/ton (about 1,570 g/t) was sampled in 1974.

Several copper discoveries in this prolific area became major mines, including Craigmont, Copper Mountain, Afton and Highland Valley. Southwest of Sunny Boy, soil geochemistry, magnetometer and VLF geophysics, trenching, sampling and diamond drilling returned a drill intercept of 3.8 g/t Au, 0.24% Cu and 32.9 g/t Ag over 13.4m.

Due-diligence work last year confirmed the presence of gold mineralization along the Master Vein over a 300-meter strike length with samples ranging from 0.33 to 2.74 ounces/ton.

The company is planning tightly spaced soil sampling, Electromagnetic and IP (induced polarization) geophysics and structural mapping to identify new mineralized structures. Although nothing has been announced, I’m hoping that a drill program can be done at Spitfire/Sunny Boy this year.

Conclusion

Falcon has five prospective projects, at least two of which are highly prospective in the near-term. The bonanza-grade, multi-ounce per ton showings at Spitfire/Sunny Boy alone could be a company-maker upon a successful drill program or two.

Likewise, the flagship Central Canada gold and polymetallic project is also a potential company-maker. A total of nine assays will be announced in the next few months, the first of which are due this month. Management is very pleased and cautiously optimistic about the visual inspection of the cores. As mentioned, one had visible gold.

In today’s metals/mining space, nothing is more sought after than new discoveries/high-grade gold intercepts at projects with blue-sky potential in safe jurisdictions (like Canada).

Make no mistake, Falcon Gold is a high-risk exploration play, but now is arguably a wise time for investors with an appetite for risk to be looking at gold juniors. In past bull markets, top performing gold companies enjoyed gains in the thousands of percent. Falcon has a lot going for it. Drill results this spring and summer, possibly from multiple projects, could be a game-changer.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Falcon Gold, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Falcon Gold are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Falcon Gold was an advertiser on [ER] and Peter Epstein owned shares in the company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events and news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

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By The Life Science Report

Source: Streetwise Reports   05/27/2020

The goal of Sorrento Therapeutics to develop a Covid-19 antibody cocktail, including its progress, next steps and market opportunity, is reviewed in a Dawson James report.

In a May 26 research note, Dawson James analyst Jason Kolbert reported that Sorrento Therapeutics Inc.’s (SRNE:NASDAQ) “STI-1499 (antibody) has demonstrated in early data a 100% inhibition of the SARS-CoV-2 virus infection of healthy cells after four days of incubation.”

He added that “we see a significant market opportunity in treating frontline workers (doctors, nurses and other mission critical personnel, as well as occupants of military ships at sea) to prevent and treat COVID infection.”

The California-based biotech aims to create an antibody cocktail against SARS-CoV-2 infection, which would still be effective if virus mutations occur. Kolbert reviewed Sorrento’s progress in this regard.

After examining billions of antibodies, the company singled out one, STI-1499, from a group that in early tests showed they bound to the S1 subunit of the SARS-CoV-2 spike protein and entirely blocked their interaction with the human angiotensin-converting enzyme 2 (ACE2), which is the receptor that the virus uses to enter human cells.

Kolbert added that STI-1499 works at a very low dose, meaning Sorrento potentially could quickly scale up to millions of treatments at a low cost. In fact, the company said that it could initially produce up to 200,000 doses each month. While it currently plans to produce 1 million doses, management said it could produce tens of millions of doses in a short time period to meet the great demand.

Consequently, Sorrento intends to develop STI-1499 as part of an antibody cocktail it calls COVI-SHIELD. The next step is getting it evaluated and reviewed on a fast tracked basis. The biotech expects to soon discuss with regulators the best pathway for doing so.

“Through the U.S.’s Project Warp Speed, it’s possible we could see STI-1499 move rapidly to commercialization,” commented Kolbert. The estimated market potential for it, he said, is about $4 billion, assuming 1 million doses at a price under $4,000, which is that of remdesivir, Gilead’s COVID-19 antiviral.

In addition to COVI-SHIELD, Sorrento is developing nonopioid pain management therapies through Scilex as its 58% owner. One is resiniferatoxin for treatment of knee pain from osteoarthritis, terminal cancer and replacement deferment. Pivotal studies for this toxin, which ablates nerves that cause chronic, inflammatory pain, are expected this year.

Another of Sorrento’s clinical-stage pain management therapeutics is Scilex SP-102, which is an epidural steroid injection for the treatment of sciatica pain. Phase 3 data are expected later in 2020.

Dawson James has a Buy rating and a $24 per share target price on Sorrento Therapeutics. Its current share price is about $5.06.

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With CBD showing some promise against Covid-19 and cannabis stocks rising, Peter Epstein of Epstein Research discusses the market with Sweet Earth Holdings executives.

By The Life Science Report – Source: Peter Epstein for Streetwise Reports   05/26/2020

One could hardly time a better entrance to the CBD/hemp/cannabis and related space than Sweet Earth Holdings Corp.’s (SE:CSE) trading debut on May 26. Late last week, researchers from Canada’s University of Lethbridge found that CBD appears to help prevent contracting COVID-19, and can treat its symptoms. Early indications suggest that CBD could be used in mouthwashes, throat gargle products and inhalers.

Make no mistake, these findings are far from definitive. Considerably more study (time + money) will be required. Yet, share price reactions were indicative of the potential upside for CBD/hemp stocks in coming months. For example, CBD industry giant Charlotte’s Web Holdings Inc.’s (CWEB:CSE; CWBHF:OTCQX) stock rose 24% on a single day from this announcement, and is up 62% from its low of May.

Other CBD/hemp stocks are up even more this month. CV Sciences Inc. (CVSI:OTCQB) is up +154%, Isodiol (ISOL:CSE) +122%, cbdMD (YCBD:OTC) +106%, Medical Marijuana (MJNA:OTC) +90%. While many readers have heard of CWEB, some are wondering about the others. Never heard of them? You’re not alone.

Surprisingly, only about 1 in 10 of the 303 hemp/CBD/cannabis and related names I track are primarily hemp or CBD-focused. The dozens of Canadian LPs & U.S. multi-state operators (MSOs) are all cannabis-focused. This suggests to me that well managed, vertically integrated hemp/CBD companies could meaningfully outperform cannabis-focused peers.

Think about it: just 10% of the stocks are hemp/CBD, yet well more than 10% of the market opportunity in the overall hemp/CBD/cannabis and related sector is from companies like Charlotte’s Web & Sweet Earth [see corporate presentation].

In the following interview, I asked founders Sam Nastat, Farinaz Wadia and CEO Peter Espig for an overview of Sweet Earth Holdings.

During the past several years, Sam Nastat has been actively involved in the funding and operations of cannabis-related businesses. During this time, Sam has created valuable relationships with growers, processors and distributors throughout the U.S. and Europe. His detailed agricultural knowledge, plus keen capital market background, gives Sam a truly unique perspective on this sector.

Farinaz Wadia is a cofounder of Forcefield, based in Oregon. Forcefield is a leader in the design/build of technologically advanced greenhouses and acts as exclusive agent for Danish based DACS A/S and the MagFan line of exhaust fans. Farinaz has the managerial skills needed to handle expansion plans for Sweet Earth, and the creativity to help Sweet Earth thrive.

Peter Espig has structured over US$2.0 billion in private equity and pre-IPO [initial public offering] investment transactions. The former Goldman Sachs and Olympus Capital executive is a pioneer in special acquisition companies (SPACs) and is a highly experienced turnaround expert in multiple sectors, on an international scale. He received his B.A. from the University of British Columbia and an MBA from Columbia Business School.

Epstein Research: Sam, your corporate presentation says, “Sweet Earth has been years in the making.” Please describe your corporate history.

Cofounder Sam Nastat: Our company started out in the famous Applegate Valley of Oregon as a stand-alone, all-encompassing hemp operation. We are not an industrial hemp grower/processor. Our intention from the beginning was, and still is, to be a large producer, but with the feel and care of a small, niche-market farm stand.

ER: Please tell readers about being awarded “Best CBD Products” at the 2019 Global MJBiz Conference. How significant an honor is it?

Cofounder Farinaz Wadia: To be chosen from among 1,312 exhibitors at the world’s largest cannabis show is a huge honor. It validated our corporate identity and product lines. To win “best CBD products” out of 111 hemp/CBD exhibitors in our first year of attendance is a noteworthy milestone. The products, our story, team and booth, all assisted in getting our message across to the thousands of people that visited with us at the conference.

ER: The CBD space is very competitive. How can readers be sure that Sweet Earth is pursuing the right products, brands and jurisdictions?

CEO Peter Espig: Correct, it is competitive. But I ask you, is there any rapid-growth, strong-margin, globally significant industry that is not highly competitive? Regarding the right products and brands, we recognize that some products will be hits and others not. This is the consequence of being cutting-edge creative. It’s more important to understand the benefits of strong partners within targeted jurisdictions than to try to go it alone.

Sweet Earth has the mentality to succeed globally. We need to think and be “globally local,” which is achieved through our local relationships that provide local insight in every global market we enter. The company has various affiliations, but our brand, Sweet Earth, and the concept of ethical, organic, high-quality merchandise, resonates globally.

ER: How can a company of your modest size afford to be in so many places, doing so many things, all at once?

Peter Espig: Good question. This can only be accomplished with trusted relationships. Our key legal advisor is based in Europe, we have a board member based in South America, we have a team in the U.S. that understands that market. The U.S. is still, by far, the largest hemp and cannabis market in the world.

Sam Nastat: In Spain we have made an investment in getting a farm up and going this year. Until we have a reliable supply of the materials that we will harvest from this farm, Sweet Earth will export its line from the U.S. to Spain and into Europe. Sweet Earth has a distributor in place to assist with the marketing and distribution so that we will have shelf space and brand awareness until our harvest.

In Panama we have a major retailer that will distribute our products, products we will export from the U.S. Once laws have been ratified in Panama for the growing and processing hemp/CBD, we will then enter into a lease for farmland that we have identified.

ER: Sweet Earth hand and body sanitizers kill the COVID-19 virus. Does management expect meaningful sales of these sanitizers?

Farinaz Wadia: Yes, we have just begun offering a high-end sanitizer that contains moisturizing qualities. These sanitizers are beginning to get noticed by chain retailers, some of which we have begun to supply.

ER: Is Sweet Earth a cultivator? An extractor? A brand developer? A distributor?

Peter Espig: Sweet Earth is, in fact, doing all four. We are a cultivator in all aspects of our growing, seed breeding, sowing and harvesting. We do not outsource those tasks. Sweet Earth has developed its own unique harvester to be able to substantially reduce harvesting labor costs. We have a building being constructed that will house the extraction equipment we purchased and the personnel to operate it.

Once construction and permitting is completed we will begin that phase for Sweet Earth and for other growers. A testament to our brand development was the award given to us at the MJ Biz Show for best CBD product line. We are on several retail platforms that have garnered us retail clients that we directly distribute to.

As a cultivator, we assure quality control and the ability to obtain scarce ingredients. Internal extraction lowers the cost of production, provides quality control and a potential revenue stream. We are not a distributor, other than for our own brands, and white label for others.

White labeling gives us experience in new products (especially when white labeling for larger entities). We recognize that on certain consumer products we lack expertise; white labeling provides us the opportunity to gain expertise and enter new markets/jurisdictions.

ER: Sweet Earth points to having 2,500 hemp plants/acre, compared to peers at 1,500/acre, and up to 15% more yield per plant. How is this accomplished?

Sam Nastat: Our strain was developed by our in-house genetics team. Our process of feeding, along with soil amendments and a unique strain, give us advantages that other recently converted commercial farms don’t have.

ER: Your CBD cultivation activities are fairly significant, but not that large. For outdoor crops, aren’t economies of scale very important?

Peter Espig: Sweet Earth is not an industrial grower of hemp/CBD. Still, our corporate reach gives us a large enough footprint for the activities that we are pursuing. For our operations, economies of scale are not necessarily advantageous. In fact, large scale creates a different platform.

Cannabis growers learned that the hard way. Growing operations of excessive size created significant quality control issues. Millions of dollars of hemp crops across North America had to be destroyed due to elevated THC levels.

Larger hemp operations typically focus on the production of biomass, not flower. We have modern machinery for harvesting; getting too large would force us to focus on the lower-end, highly competitive biomass segment, which does benefit from economies of scale.

ER: Many companies are starting to talk about CBG and CBN. Where is Sweet Earth on this front?

Sam Nastat: Sweet Earth has begun to explore that avenue, and some of the acreage in our 2020 growing cycle will include those strains that have shown promising CBG/CBN yields. While many companies are talking about CBG and CBN, not all have the experience and a dedicated genetics team like we do.

ER: To what extent is purchasing CBD products a luxury item versus a necessity?

Peter Espig: We are witnessing a paradigm shift in consumer consumption. There’s a big difference between “luxury item” and “superior quality item.” Our products are high quality, but also within the price range of most consumers. Online sales of products have performed very well. We need to emphasize traffic to our site and a user-friendly online shopping experience.

Typically, during hard economic times, high-price fashion brands suffer the most. However, consumers still like to shop and enjoy the experience of receiving an exclusive product at an affordable price. We need to instill this into the consumer.

ER: COVID-19 has already had a tremendous impact on business activity. Given this uncertainty, how is Sweet Earth planning for the rest of 2020?

Peter Espig: Yes, it has impacted us. The reality is that sales of biomass and flower have been negatively impacted. On a positive note, new supply is, and will be, greatly diminished. Sales of sanitizer products have performed well, but other products have suffered.

ER: Thank you, Sam, Farinaz and Peter, for your time and thoughtful responses to my questions. I wish you the best of luck and will circle back in June.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

Epstein Research Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Sweet Earth Holdings, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Sweet Earth Holdings are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Sweet Earth Holdings was an advertiser on [ER] and Peter Epstein owned shares in the company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
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3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Graphics provided by the author.

( Companies Mentioned: SE:CSE,
)

Sector expert Michael Ballanger considers what the post-pandemic world could look like in the aftermath of central bank actions.

By The Gold Report – Source: Michael Ballanger for Streetwise Reports   05/26/2020

As I sit here on the shores of lovely Lake Scugog, its weed-infested waters lying in wait for countless unsuspecting propellers soon to be ensnared, I am reminded of the failed world of central banking and policy initiatives, which too has become ensnared in flora of its own making—a floating algae bloom of debt, deception and intervention.

Following this metaphor apropos, there is nary a dock with twenty miles of Port Perry that is navigable without encountering an impassable wall of goose droppings. Being Canada’s favorite bird, these creatures are the height of ornithological fecal incontinence. Sadly, as a “protected species,” citizens are prohibited from causing them not only any harm, but also inconvenience (as in shooing them off your property), resulting in spoiled lawns and malodorous decks and gazebos. When I see a flock of these flying manure sacks about to land on the lake, I am once again reminded of politics, where unelected officials are paid to engineer policies of unknown outcome and uncertain consequence, but where the result will be despoiled surroundings, economic disaster and odors of the foulest origin.

Alas, another thing held in common by a goose and the politician is that both can be found on a stamp, and both worth well under a dollar, and therein lies a lesson of sorts, a parable, a fable of resounding relevance.

I have spent the better part of a week listening to the pundits spouting off on the form and shape of the “recovery” once the lockdowns end and people start breathing on each other once again. It will be either “V-shaped,” “L-shaped,” “U-shaped,” or it might be shaped like a gigantic phallic symbol, headed squarely for the exposed hindquarters of the poor, the elderly, the retired, the unemployed, the single mom, the single dad and just about everyone except the 1% of the population being levitated both emotionally and financially by the Federal Reserve, the U.S. Treasury and the White House, all of which are totally and irrevocably obsessed with the stock market. Their focus is not the standard of living in the suburbs of Houston; it is the forward price-to-earnings ratio (P/E) of the NASDAQ.

Our policy-makers were raised in era of stock-based compensation, seed round investing, and behavioral finance manuals all centered around an economic theory called the “Asymmetrical Wealth Effect.” In this theory, those with stock portfolios feel better about spending when stocks are charging higher, resulting in a vibrant consumer-driven economy and the nascent trickle-down of that wealth from the uber-rich to the rich to the “sorta” rich, who spend every dime they have to resemble the uber rich by going into hock.

In Canada, unlike the U.S., the popular version of the all-sustaining ATM machine has been the real estate market, where the Conference Board of Canada just pegged the average house at negative 18% off the peak several months ago.

The collusion between the Canadian banks and the Canadian government is beyond rank; it is criminal. The one and only driver for the Canadian economy since the Great Financial Crisis (GFC) was housing, and what drove housing was immigration, and as long as the Chinese and Russian money could be laundered seamlessly by the Canadian banks, it drove up house prices and their obscenly profitable loan portfolios.

They were all doing the same thing; all feeding at the same trough, whether a hog or a sow or a piglet, such that when the immigrant rang the triangle, the grunting and snorting was drowned out by the screaming and clapping of the Canadian politicians, wildly waving pompoms from the bleachers. Bonuses soared and political donations flourished, and all was well in the hallowed halls of Bay Street.

Now, with malls toast and high-rise office towers vacant and everyone realizing that there is no longer a need to commute three hours per day, who is going to be paying rents and leases in these commercial real estate buggy-whip factories? The food courts in these malls are not going to be reopened with a Timmy’s, a MacDonald’s, and seventeen Asian wok emporiums serving soggy rice and two-day-old chicken balls; they are going to stay shut.

In case you have yet to figure out the direction of this missive, all the above is immaterial to the discussion of stocks because it is the belief held by Jerome Powell of the U.S. Federal Reserve, and Haruhiko Kuroda in Japan, and Tiff Macklem at the Bank of Canada, and all the rest of these global “disciples of doom” that as long as stocks remain elevated, consumers will spend and all will be good.

The $6 trillion as a first stab by the U.S. Fed is going to snowball, and when I factor in the global move to reflate the system against a massive tsunami of deflationary forces, it could make Zimbabwe in the ’90s look like Switzerland in the ’70s.

To wit, there are two major faults in the thesis held by Powell and Co.: 1) that the majority of Americans are stock market investors and that the S&P at 3,500 will prompt business owners to keep all of their employees at work; and 2) that a 35% unemployment rate and riots in the streets by those who do not own stocks will create an economic outcome that, in due course, craters the stock markets. Just as Newton’s Law commands that for every action, there is an equal and opposite reaction, a sharp stock market retest (of the March lows) could quite easily create an “Asymmetrical Poverty Effect” throughout the ranks of entrepreneurs, and that would be a nail in the lid of the V-shaped recovery coffin.

The SPY (exchange-traded fund [ETF] for the S&P 500), which trades at 1/10th of the SPX, bottomed on March 23 at 218.26, at the exact point where Powell and Steve Mnuchin announced they were ditching bazookas in favor of “The Guns of Navarone” in their “policy initiatives” (magic money). Since then, it has pretty much been straight up. The New York Fed has done everything in its power to prolong and promote the rally in stocks and corporate bonds, but while the former is (in my humble opinion) “fake,” the latter is even “faker,” because you normally do not have bond prices and stock prices rising together.

Since bond investors are infinitely wiser than stock investors, the bet has to be placed on corporate bonds over corporate equity because debt holders have first lien on assets well in advance of equity holders, who have only a stake in future profits through dividends. If the company has no revenue and a bunch of empty buildings where tenants are paying no rent because employees were ordered by the government to stay home, then it is forced to look after bondholders first because they hold all the power in a solvency-centric world.

This is precisely why the banks are happy as hell to use fantasy money to buy up all the high-yield garbage that got issued from 2009 to 2020 to fund stock buybacks, because they can lay it off to the perpetual “Superbid” emanating from the NY Fed. The other reason is that, while the “deplorables” (referred to by a certain female Democratic candidate in her 2016 run for the U.S. presidency) have no stock in their household gin mills, their turkey-shoot bosses do have stock portfolios. The deal is this: The NY Fed buys all of your bonds at a 50% premium to market, and you get your traders to keep the S&P “bid” until election time. So, the hedge funds that got a huge lift late last year from the REPO print-a-thon are now getting another huge lift from the high-yield-debt print-a-thon, and never the twain shall meet!

Now call me cynical or call me jaundiced or call me a sexagenarian grouch, but at the essence of this entire discussion is the emerging reality that whether we get a “cure” or a “vaccine” or an “anal hypodermic” to fix things, life as we knew it in 2019 is not going to revert to the norm for one simple reason: times have changed.

You all recall my missive from January, when I spoke of “distrust” as the number one risk to the stock market. I surmised that it was that very “distrust” that would drive precious metals higher and stocks lower. I was (eventually) proven right, but not after tremendous “kitchen heat,” which usually takes the poorly equipped males to the sidelines (and I meant that in an emotional versus anatomical context).

The conditions in markets today are as menacing as I have ever encountered. What I mean by “menacing” is that most traders can fade off the consensus view—that is, if fifteen trader buddies that I know (who have never owned silver) are asking me where they can get $350 million worth of “deliverable silver,” we have a serious problem.

There is no doubt that we have entered a collective narrative regarding the precious metals that currently rhymes with 2009 but may not exactly repeat it. The reason is that we had a financial crisis in 2008, whereas we have an economic crisis today. One industry nearly vaporized itself in 2007–2008, and was rescued by bailouts in 2009; today we have multiple industries, like the airlines, restaurants, shopping malls, autos and the associated service industries, all operating with drastically reduce revenues.

Compounding the problem is the debt created when all component companies in the S&P 500 borrowed heavily in the corporate debt market (think “high-yield”) to finance those massive stock buyback schemes into which insiders were allowed to exercise options, sell their stock and become enriched. Today, they are standing in a long queue, hands extended, palms up, hat-in-hand, awaiting government—er, taxpayer—bailout money.

Further exacerbating the problem (and soon to fuel the public outrage) is that Jerome Powell is now using illusory funding to prop up that ocean of toxic junk, which essentially condones the very corporate misbehavior that caused the problem in the first place.

In the world of trading and investing, there are a few cognitive biases that plague us, sometimes occasionally but more than often frequently, and the one that I find particularly beguiling is “recency bias.” A good example might be how I recall the recent 2009 recovery, which was based solely on Fed interventions, and draw the conclusion that since it worked back then, it must work now. Similar to that conclusion, the stimuli used from 2009 to 2011 caused investment flows to drive the precious metals to all-time highs, as generalist portfolio managers migrated into the space in droves. Since the massive money-printing exercises worked back then, they will work now, especially since the depth and dimension of the 2020 bailout action have been gargantuan compared to the 2009–2011, and from all indications, may continue to escalate.

This recency bias is an easy place to reside, because in the world of competitive money management, being underweight a top-performing sector while your competition is overweight is hedge-fund purgatory. They would rather have equal representation in a crashing sector with everyone overweight than be underweight in a rising one. I call it the “misery loves company” effect, and from a competitive viewpoint, it makes sense. From a common-sense viewpoint, it is lunacy.

Where I differ from the masses here in the spring of 2020 is that conditions in 2020 are vastly different than in the 2008 crisis. What is not different is that the underlying problem, and the proposed policy actions by the politicians and the central bankers, have little to do with the pandemic and everything to do with the root problem. That root problem is debt.

I have been writing about this for thirty years, and the more I rant and rave and throw darts at Jim Cramer pictures and (sometimes) empty wine bottles at television screens and quote monitors from ninth-floor windows (aimed squarely at the noggin of some latte-sipping, iPhone-reading investment banker), the more they keep piling on billion after billion (now trillions with a “T”) of counterfeit currency to the steaming mound of phony fiat that already exists!

The vast majority of precious metals bulls are tilted toward the hyperinflation camp, where this galaxy of new debt (created by those self-empowered to do so) will result in massive drawdowns in the purchasing power of all global fiat currencies. I must have read fifty articles since the March crash, and arrival of “QE [quantitative easing] to infinity,” calling for Weimar-like conditions on the immediate horizon, and while I appreciate the commutative property of arithmetic, what all of these articles forget is that there is no precedent in history for current global economic conditions. For that reason, I rate the odds of a deflationary collapse equal to the odds of a hyperinflationary conflagration.

The reason I am currently cautious (as opposed to be bearish) on virtually everything is that no one out there in the precious metals blogosphere has any concrete clue as to the future outcome, because there is no blueprint for successfully dealing with a) a pandemic and b) uncontrollable debt. Nowhere do I read that “debt reduction/destruction is deflationary”; all I read is that “money printing is inflationary.” But we had massive debt monetization in 2009–2011, and inflation rates stayed calm.

On March 14 of this year, I issued subscribers my “generational buying opportunity” for the gold miners (both senior and junior ETFs GDX and GDXJ), and the next trading session was the single best entry point in both price and timing in my forty-year career. I had cautioned everyone that while I was ragingly bullish long-term on gold and silver, I was fearful of a major correction in stocks, so we were flat the miners when the COVID Crash arrived.

Today, I am once again flat (and nervous) the big ETFs, but well positioned in the junior developers and carrying a 65% cash position. Why so cautious? It is because I do not know for certain whether or not I will wake up tomorrow morning with a deflationary tsunami crashing into all markets, including the precious metals. And as Mark Twain famously wrote: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

If this widely anticipated inflation “just ain’t so,” there will be trouble.

Originally published May 23, 2020.

Follow Michael Ballanger on Twitter @MiningJunkie.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

By Money Metals News Service

It’s no surprise to most investors that the Fed is propping up the stock market. However, if we compare the Dow Jones Index versus the continued unemployment claims, something seriously wrong is going on. According to the St. Louis Federal Reserve, continued unemployment claims are nearly four times higher than the peak reached in June 2009.

When the continued unemployment claims reached a peak in 2009, the Dow Jones Index had fallen 54% from its highs in 2007. On the other hand, today, with 25 million Americans receiving unemployment insurance, the Dow Jones is only down 13% from its high.

The continued unemployment claims are shown in both the bottom of the chart and also behind the Dow Jones Index candlesticks. As the unemployment claims reached peaks, in 2003 and 2009, the Dow Jones Index bottomed. I can assure you the HUGE RED CANDLESTICK with the wick nearly reaching down to 18,000 level, that wasn’t a BOTTOM. Bottoms, shown in the past, last 2-3 quarters.

Furthermore, the continued unemployment claims are nearly FOUR TIMES higher than they were in 2009. Thus, the Dow Jones Index should fall even lower in percentage terms. As shown in the chart above, the Dow Jones Index fell 54% from its high. For the Dow Jones Index to hit the same percentage low, it would have to fall to 13,750. So, the 18,000 level wasn’t the low for the Dow Jones.

Sure, the Fed will continue printing money to prop up the stock market and economy, but at some point, GRAVITY and the LOUSY FUNDAMENTALS will kick in.

I stated that I would put out a new video over the weekend, but due to research in other projects, I will try to get it out in the next 1-2 days. I will show that it wasn’t any COINCIDENCE that the Dow Jones Index corrected near the 18,000 level.

Regardless… there’s a lot of damage continuing to take place in the economy that will only make matters worse in the second half of the year. Even though Americans are now driving more, going back to work, restaurants, and shopping… the economy is seriously broken. It will likely never return to the same level we enjoyed last year.

The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.

By IFCMarkets

Better than forecast French data bullish for FR40

French economic data in the last couple of weeks painted a picture of an economy in dire straits but showing signs of easing of the steep downturn. According to Markit, France’s Manufacturing PMI increased to 40.3 in May of 2020 from a record low of 31.5 in April, better than market expectations of 36.1. And Services PMI increased to 29.4 in May of 2020 from a record low of 10.2 in April, when a reading of 27.8 was expected. Readings above 50 indicate activities expansion, below indicate contraction. So while contraction in private business sector continued it slowed. Better data are bullish for FR40. At the same time deterioration of France’s economic performance is a downside risk: France’s economy is on course to contract 20% over quarter in the second quarter, the INSEE official statistics agency estimates.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By The Life Science Report

Source: Streetwise Reports   05/26/2020

Novavax shares traded higher after the company reported it enrolled the first participants in its Phase 1 clinical study of NVX CoV2373.

Novavax Inc. (NVAX:NASDAQ), which focuses its efforts on developing next-generation vaccines to address infectious diseases, yesterday announced that it enrolled the first group of participants in a Phase 1/2 clinical trial of NVX‑CoV2373, its coronavirus vaccine candidate. The firm explained that NVX‑CoV2373 is a stable prefusion protein that is created utilizing its proprietary nanoparticle technology. The company further indicated that that “NVX‑CoV2373 includes Novavax’ proprietary Matrix‑M™ adjuvant to enhance immune responses and stimulate high levels of neutralizing antibodies.” The company added that it expects to receive the first initial Phase 1 immunogenicity and safety data in July 2020.

The company’s President and CEO Stanley C. Erck commented, “Administering our vaccine in the first participants of this clinical trial is a significant achievement, bringing us one step closer toward addressing the fundamental need for a vaccine in the fight against the global COVID‑19 pandemic…We look forward to sharing the clinical results in July and, if promising, quickly initiating the Phase 2 portion of the trial.”

The firm advised that the Phase 1/2 clinical study, which is enrolling approximately 130 healthy participants 18 to 59 years of age at two locations in Australia, will be broken down into two parts. Phase 1 will be a randomized, placebo-controlled trial to test the immunogenicity and safety of NVX‑CoV2373. Phase 2 is then expected to expand to several other countries including the U.S. and will assess immunity, safety and COVID‑19 disease reduction in a broader age range of patients.

The company pointed out at “this Phase 1/2 approach allows for rapid advancement of NVX‑CoV2373 during the pandemic and that the trial is being supported by the recently announced funding arrangement with the Coalition for Epidemic Preparedness Innovations (CEPI).” The firm noted that CEPI will be providing up to $388 million in funding to advance clinical development of NVX‑CoV2373.

CEPI’s CEO Dr. Richard Hatchett remarked, “Entering clinical trials is an important step on the path to delivering a safe, effective and globally accessible vaccine against COVID-19. Vaccines provide our best hope of permanently defeating this pandemic, so it is encouraging to see rapid progress being made in the development of Novavax’ vaccine candidate. …Our investment in Novavax allows us to focus on manufacturing in parallel with the clinical development of the vaccine, so that if the vaccine is proven to be safe and effective, we can make doses available to those who need them without delay.”

The company listed that “NVX‑CoV2373 is a vaccine candidate engineered from the genetic sequence of SARS‑CoV‑2, the virus that causes COVID-19 disease and that NVX‑CoV2373 was created using Novavax’ recombinant nanoparticle technology to generate antigen derived from the coronavirus spike (S) protein and contains Novavax’ patented saponin-based Matrix-M™ adjuvant to enhance the immune response and stimulate high levels of neutralizing antibodies.”

Novavax is a late-stage biotechnology company headquartered in Gaithersburg, Md., with additional facilities located in Rockville, Md., and Uppsala, Sweden. The firm is focused on improving global health through discovery, development and commercialization of novel vaccines to prevent serious infectious diseases. The company’s product pipeline includes clinical vaccine candidates for respiratory syncytial virus, seasonal influenza and Ebola virus and other infectious diseases.

Novavax has a market capitalization of around $2.7 billion with approximately 57.96 million shares outstanding and a short interest of about 9.9%. NVAX shares opened 17% higher today at $54.00 (+$7.89, +17.11%) over Friday’s $46.11 closing price. The stock has traded today between $49.57 and $54.50 per share and is currently trading at $50.15 (+$4.04, +8.76%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: NVAX:NASDAQ,
)

Article By RoboForex.com

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, after growing towards the resistance level and forming a Shooting Star pattern, EURUSD is not expected to reverse. We may assume that after a slight correction the price may continue growing towards 1.1075.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after re-testing the resistance level and forming a Harami pattern, USDJPY has started to reverse. The current situation implies that after a slight correction the market may break the resistance level and continue moving upwards. In this case, the upside target may be 108.40. However, there might be another scenario according to which the instrument may fall and return to 107.50.

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, the pair is testing the resistance level again. After forming a Shooting Star pattern, EURGBP is reversing. The correctional target is at 0.8935. After that, the instrument may continue the ascending tendency. In this case, the upside target may be at 0.9055.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is trading at 9142.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 9015.00 and then resume moving upwards to reach 9775.00. Another signal in favor of further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 8705.00. In this case, the pair may continue falling towards 8105.00.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3766; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3775 and then resume moving downwards to reach 1.3575. Another signal in favor of further downtrend will be a rebound from the upside border of a Triangle pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.3895. In this case, the pair may continue growing towards 1.3985. To confirm further decline, the asset must break the downside border of the Triangle pattern and fix below 1.3675.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6187; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 0.6165 and then resume moving upwards to reach 0.6315. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 0.6120. In this case, the pair may continue falling towards 0.6030.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By Orbex

EURUSD Struggles To Breakout Above 1.1000 Handle

The euro currency is on the front foot as prices once again rose to test the 1.1000 level.

A brief breakout above this level led prices to intraday highs of 1.1030 before settling back under 1.1000.

Despite attempts to push higher, price action remains questionable.

Unless there is a strong breakout, the current moves could quickly fade away.

Alternately, if EURUSD manages to establish support near the 1.1000 level, this could give the upside a bit of a push.

The next main level of interest is at 1.1132.

Sterling Retraces Gains, But Upside Bias Builds Up

The Pound sterling briefly rose to highs of 1.2364 before retreating lower.

Price action is currently back near the price level of 1.2275. Given that this proved to be a resistance level, the retest will likely establish it as support.

A successful rebound off 1.2275 will confirm further upside in GBPUSD.

The next main target is at 1.2425 where resistance will most likely keep a lid on further gains.

For the moment, the reversal near 1.2275 is important. A close below this level will invalidate the bullish bias.

Crude Oil Slips Back Below The $33.66 Technical Resistance

WTI Crude oil prices gave back the gains from earlier this week as prices are trading softer.

The commodity is trading near the 33.66 level which has been somewhat difficult to break past.

But, the Stochastics oscillator is positioned bullishly and this could trigger further upside.

A strong close is needed to confirm the upside which will see the commodity rising to the levels near $40.

XAUUSD Extends Declines As Further Downside In Scope

Gold prices are pushing lower after the precious metal failed to find support at 1717.65.

The breakdown below this level has led to gold falling over 0.80% intraday.

Prices are now trading off a minor support level at 1696.50.

If this level holds, we expect some consolidation with the price levels.

Alternatively, a break down below 1696.50 will see gold prices falling back to lower support near 1671.95.

This will mark a much-anticipated correction in gold prices in the longer-term horizon.

By Orbex