Stock Chart BVN

Stock Chart Analysis BVN

Compania de Minas Buenaventura SA (ADR) (Public, NYSE:BVN)

I wasn't sure about posting this chart tonight, because I was looking for gold to pull in a little more. However, this chart is close enough to a breakout that it should be on my watchlist. I can't predict if it will clear the descending trend line or not, so the best I can do is prepare for it, and watch what unfolds. Gold stocks don't necessarily trade in perfect unity with physical gold, so the miners may take the lead here. As for Gold in general, it still looks pretty good to me, although it will be interesting to see what happens if oil continues to drop.

Looking specifically at BVN, it was on quite a nice trend from January 2007 through March 2007, before beginning a correction. This correction it is in has been rather mild, and BVN has respected the $59-$60 area very consistently. The 200 sma is now exerting pressure from below as the trend line converges from above. There should be a resolution fairly soon, and my guess would be that this is a continuation pattern.



Good Trading,


Joey

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