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Wednesday February 10, 2010
Gold and alternative energy
By Jason Hamlin, editor The Gold Stock Bull
Meanwhile, I have been bearish on energy shares, but will look to enter select energy companies which tend to lead the market higher during rallies. Long-term, the renewable energy sector will likely be the next major growth area of the economy. Precious metals have reacted to dollar strength and the overall market decline by falling back; $1,075 is is a key support level and whether it holds or gives will be very telling for the direction of the gold price over the next several months. 
Meanwhile, $1,027 was resistance during September and support during October of 2009. Any drop below this level and gold is likely to retrace all the way to $900. On the other side of things, if gold finds support and can bounce of these levels, it should be able to quickly burst back towards $1,200 or higher. I will be looking for gold to break through $1,150 before confirmation of the next major upleg.
I am also bullish on geothermal energy companies and believe this source of energy will prove compelling as technology continues to advance in this area. My favorite geothermal play is U.S. Geothermal (AMEX: HTM) which quietly advanced 255% during 2009. The share price would still need to more than double to return to its 2008 high, so I believe plenty of upside potential remains. Strathmore Minerals (Vancouver: STM or STHJF) remains my favorite play on nuclear energy. Some fresh life has been injected into this sector as Obama singled out nuclear power in his State of the Union address.
I continue to believe that Strathmore is extremely undervalued and could double in price as they move their Roca Honda project towards production. I also believe the uranium price is due to increase substantially as a dozens of new nuclear energy plants are put online in China and India over the next few years. Learn more about this financial newsletter at The Gold Stock Bull. |
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The renewable energy sector will likely be the next major growth area. I continue to favor the 