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Wesdome Gold Mines Ltd (WDO.TO) - February 7, 2024


Wesdome Gold Mines, Ltd. (WDO.TO) has been on a roll for the last couple of months. Positive exploration news, positive earnings, and a positive response to the partial acquisition of a neighbour have combined to spark a rally in the shares which are up 25.2% in the last month compared with measly 0.1% gains for both the S&P/TSX Composite Index and the price of Gold, over the same period.

This renewed interest has enabled Wesdome to soar up the rankings in the SIA S&P/TSX Composite Index Report, leaving the red zone, driving up through the yellow zone and now returning to the Green Favored Zone for the first time since July of 2022. Over the last month, WDO.TO has moved up 123 positions to 38th place, including a jump of 41 spots yesterday.

Candlestick Chart Breaks Out of a Base:

A major breakout is underway in Wesdome Gold Mines (WDO.TO) shares. Since a major 2022 selloff bottomed out a year ago, Wesdome shares have been base building between $6.00 and $9.00. Over that time, a series of higher lows below consistent resistance has formed a bullish Ascending Triangle base.

This week, the shares have decisively broken out over $9.00, completing the base and signaling the start of a new uptrend. Initial upside resistance may emerge near the $10.00 round number, then $11.00 and $12.00 based on measured moves up out of the base. Initial support may appear near the $9.00 breakout point, followed by the 10-week moving average near $8.00.

Point and Figure Chart Breaks Out of a Downtrend:

It increasingly looks like Wesdome Gold Mines (WDO.TO) has turned the corner and come under renewed accumulation. After selling off through 2022, the shares stabilized over the course of 2023 and in the last two months, it looks like a new recovery trend has started.

Back in December, the shares snapped a downtrend line and staged an initial rally, then fell back in January. Following a successful retest of $7.00 support, the shares have started to rally again, completing bullish Double Top and Spread Double Top breakouts, and rallying up above $9.00 to their highest level since May.

Initial upside resistance may appear near the $10.00 round number, where previous column highs/lows plus a horizontal count converge, followed by $10.85 where a vertical count and previous lows converge. Initial support appears near $8.40 based on a 3-box reversal and a retest of a previous breakout point.

With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) increasing to 9 out of 10, WDO.TO is exhibiting short-term strength against the asset classes.

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