Last week was a choppy weak of action with much of the underlying action being worse than the indices were showing. Most traders who focus on small to mid-caps found much uncertain action in the stocks they held making it a tough week. Call options are overly bullish and that can be viewed as a contrarian indicator. As we enter the end of the year, this is also the last chance to take profits or losses for the tax year. However, the week ended with some positive signs in precious metals/mining and biotech. If this week can build off the end of last week, the following stocks are poised for some solid upside gains.
Paramount Gold and Silver (PZG)
PZG engages in the acquisition, exploration, and development of gold, silver, and other precious metal properties primarily in Mexico and Canada.  PZG has no debt and just under $19 million in capital. PZG seems to have found support around $2.48 and is trying to complete the triangle towards a breakout. Look for PZG to find resistance around $2.90 before attempting to break its recent 52-week high of $3.14. I would not be shocked if it has a pullback from the resistance at $3.14 before testing it a third time to break it.
Cardero Resource Corp. (CDY)
CDY together with its subsidiaries, engages in the acquisition, exploration, and development of iron, copper and gold ores properties in Mexico, Peru, Argentina, and the United States. The company has no debt and significant capital of over $61 million. CDY has been making higher lows since early November and looks to continue that streak. It has found support around $1.43 and looks to be making a push towards resistance again. Look for it to push past resistance around $1.63 making a new 52-week high.
Almaden Minerals (AAU)
AAU is an exploration stage company that engages in the acquisition, exploration, and development of gold, silver and copper properties in Canada, the United States, and Mexico. AAU has no debt and capital of about $21 million. AAU found support around $3.95 and has tested resistance twice and failed at $4.80. Look for solid volume to push AAU over $4.80 and breakout to new 52-week highs.
As always, do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna has no positions in the mentioned stocks but may take a position within 72 hours.
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