GSS - Golden Star Resources

Jun 11, 2010
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GSS is a $1.2 billion basic materials company that engages in the exploration and production of gold. GSS has been consolidating for the last 5-6 weeks after making new highs with a long-term negative divergence in play. After a brief period of weakness, GSS has once again begun to climb and looks poised for higher highs in time. We like entry from the current price down to $4.40, with a closing stop beneath both the 20 day EMA and the 50 day SMA. If GSS were to close that low, it would also be breaking beneath price support and back into the triangle, which we believe to be unlikely. To the upside, GSS will have to navigate $4.80 resistance, but the measurement on this breakout is $5.40 and we believe that GSS will ultimately reach that level.