Monday, December 4, 2006

Caledonia Mining Continues Lower

Caledonia mining is a penny stock that I own. At this time on the weekly chart it continues to plod lower into what I think is a bullish falling wedge. I am looking for CALVF to break out to the upside on the weekly chart by closing above the current downtrend line.

Take a look at this long term chart below. You can see that two times Caledonia stock has taken off to incredible heights in a relatively short period of time. Is another blast off just around the corner? With gold and base metals heading higher this would seem to be the perfect time for CALVF to soar.

Or, will it continue to underperform as it has for a long time? Caledonia has a whole lot of shares outstanding.