Yesterday as gold flirted with the key $1220 level many junior gold mining share charts began to break-out from mature basing patterns. Take Balmoral Resources (BAR.TO) for example, a chart we highlighted early in the trading session on the CEO.ca Index Channel:
BAR.TO (Daily)
The TSX-V Composite also broke-out from a 'high & tight' bullish flag pattern which it had spent the last couple of weeks forming:
TSX-V (Daily)
Coupled with the modest, and healthy, pullback we have seen in gold since yesterday's $1220 test these are very positive signs. The most bullish scenario will see gold oscillate just below $1220 for a couple of days before breaking higher, on its way to $1250. Mining shares should remain well bid for several more weeks as February is arguably the most bullish month of the year for junior resource shares historically.
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