CDN - Unearthing China's Multi-Million Gold Deposits

Hi CDN gang, see the link


The article is below BUT the graphs didn't paste at all, see the article for the graphs. Yes CDN have a GREAT investnment in Eldorado, it is THE leading gold share in the WORLD right now for many technical chartists. THe Price objective is $69 REPEAT $69. Check the article above.

Seems to me that CDN will be bought out, hopefully for much more than the current price.

I have moved on from CDN ( sorry long CDN termers - no disrepect intended), as I have spent hundreds of hours on TA training and want to use my capital on faster moving shares. I do hold ELD. My initial thought is still true i.e. CDN will come good one day.

I just think the UK investor herd is still being brainwashed by the media, but 2006 could be the year. Good luck to all.

P.s. I am writing to my MP to ask why Gordon Brown sold OUR GOLD reserves in the lowest price for years. Now that our N Sea oil is gone and out Balance of PAyments is at record levels we ARE in deep trouble, make no mistake.

THE PRECIOUS METALS

"YOU AIN'T SEEN NOTHING, YET"

"EGO ~ "THE ROAD TO ELDORADO"

GOLDRUNNER

The Merriam-Webster Dictionary defines "El Dorado" as a place of fabulous riches or opportunity. In my opinion Eldorado Gold Corp. (EGO) might carry that definition to new heights as this Precious Metals Bull Market carries through to fruition. From the fundamental analysis side, it appears that EGO is a Gold mining corporation that expects to quadruple its Gold production by sometime in 2007. Its hedge-free status means that as this rising Gold Bull rears it golden horns, EGO will be simultaneously benefiting from higher priced Gold while production is increasing. What might that mean for EGO investors? Well, let's go to the long-term charts and have a look……….but the future looks so bright ~ "You might want to wear shades!"


EGO ~ LOOKING DOWN THE ROAD




In my opinion, the above chart of EGO shows a very bullish formation. The price action that rose to the top of the channel will likely prove to be just the Wave I for EGO. We can see that price then "corrected" back to the bottom of the channel, correcting 50% of the price rise into what appears to be a Wave II bottom. Recently, price action has broken upward through the 2 blue resistance lines (and re-tested each) and even appears to have broken through the horizontal resistance of the old high. This is very technically bullish for the future of EGO's stock price.

The technical indicators look extremely bullish as well. Notice the "on balance volume" breaking out to new highs as well as the strong upward break-out of the MACD, confirmed by the trending indicator, the ADX line. This chart looks like price is sitting on top of a virtual mountain just waiting to be taken up to the heavens.

Projecting future price targets of any stock is always difficult, but the next upside target might be the light blue angled resistance line up around $10. Please note that this is the Canadian version of the Eldorado chart so the similar price in the USD might be around $8. If we use a directional line to direct us to what price EGO might trade up to in Wave III, we come up with a price target between $60 and $70 Canadian. What a ride that might be!


"EGO ~ LEADING DOWN THE ROAD"




I consider the chart of EGO to be very important to our "Fractal Work" on the HUI Index. EGO was one of the Gold stocks that led the HUI up and out of "fractal one", and it looks to be playing the same leadership role, today. In the above long-term chart of the HUI Index, we can see that the HUI sits in a similar position to that of EGO. I have drawn a directional line in green to simulate the path the HUI might take to our next estimated fractal target in the 380 to 390 price area. The dotted blue directional line is drawn up to the potential Wave III HUI target which lies up in the Stratosphere. I suspect that the 380-ish HUI fractal target might equate to an EGO Canadian price of between $9 and $10. Tonight, Mr. HUI might be doing a little cheer………."Go, go, EGO!"


EGO ~ "LAUGHING ALL THE WAY"




Some relationships are worth noting. The chart, above, shows EGO plotted along with the price of CDE. It looks like the price action of CDE lags a bit in time, but the charts look very similar over the time period shown. This break-out by EGO on the charts might be very good news for the shareholders of CDE, it seems, should the above price relationships hold. At this time of the Holiday Season, it appears that most PM stock investors might be hoping that EGO continues to take the lead…….."Laughing All The Way!!!!"

Oh……One last question. Do you see any reason at all from the above charts shown why a PM stock investor would not want to hold shares of EGO in his portfolio?

The link to the Gold-Eagle Forum is………….

www.gold-eagle.com/cgi-bin/gn/get/forum.html

A VERY MERRY CHRISTMAS TO ALL………….

Again, I'd like to thank all of the posters at the Gold-Eagle Forum for their daily input. This thank you is especially extended to TQ and to Grininbarrett. Special thanks go to Dr. Vronsky and Westerman for creating the Gold-Eagle site and for editing my work. A very special "Congratulations" go out to Dr. Vronsky and Westerman after GOLD-EAGLE saw its hit counter ring up 204 million this last week.

Thanks also go out to CaptainHook and David Petch of TreasureChests since I have learned so much from them. They can be found at www.treasurechests.info/index.php

There are many great editorials that can be found on the GOLD-EAGLE site at the following link. www.gold-eagle.com/research/petchndx.html



GOLDRUNNER

December 20, 2005