After rallying more than 60% during April & May shares of Continental Gold (CNL.TO) have pulled back 20% during the past few weeks:
The recent pullback has formed a falling wedge pattern which would resolve higher on a breakout above $2.60. Moreover, the $2.40 level represents the lower boundary of the 2-standard deviation Bollinger Band as well as an important confluence point of the Fibonacci arc drawn from the April low to the May peak and previous support/resistance.
In addition, we anticipate the company will announce successful receipt of mining permits from Colombian authorities as well as an updated resource estimate over the coming weeks which should offer a steady stream of bullish news flow.
The author of this post purchased shares of CNL at C$2.38 this afternoon. As always do your own due diligence.