Lion One - a genuinely high-grade gold developer in Fiji

The improvement in sentiment observed in the previous Weekly flowed through last week with many stocks bubbling higher on Thursday, but Friday saw the inevitable pullback with red ink filling the screens. There will be more than a few nervous traders as a result of the 2.33% fall in the All Ords on Friday as this caused a breach in the uptrend. The 1.17% fall in the Dow on Friday night will need to be absorbed before our local market attempts a rally, which technically means an upwards movement within a longer term downtrend.

The Metals and Mining and the Energy indices both had heavy falls but the recent uptrends have not yet failed, so maybe stocks in these indices are less vulnerable to inflation and interest rate hikes. Precious metals performed well over the week with gold hitting a two month high as silver rose 7%. Palladium has risen 9% and platinum has had its best week since June. It seems that the drift towards higher interest rates has been hurting tech stocks more than gold and mining stocks.

We attended a conference presentation from Lion One in 2021, but we never got around to writing up the notes. So, we have made a feature of it this week as we view it as a gold development company of significant merit. We have had it under chart coverage for some weeks now, but trading activity in the stock has been minimal ... on the ASX.

 

 WeeklyComm22January2022.pdf