RBY Jumps 20% on News of Another Major Gold Interception

December 11, 2008


In our previous commentary we suggested that RBY would move from its support level to new highs at the end of the month and it looks like we're heading in the right direction.

In the last 3 days, RBY's price surged from $ 0.73 to over $ 0.90 and it seems we might have more ways to go. If we breach the .90-1.05 resistance level then we could declare with confidence a new trend. We think this is most likely to occur within a little more than a month from now.

Today, Rubicon Minerals execs complimented RBY's surge with good news of yet another high-grade gold interception up at its Red Lake, Ontario mine. Rubicon Minerals has consistently released positive news that is undoubtedly attracting new investor interest and old investor confidence.

This may be the beginnning of a new long term trend. Many traders of mining stocks use the HUI (Gold Bug Index) as an indicator about overall trends for specific mining stocks. The index now shows a clear reversal from our previous sector slump. The price of gold has yet to show us a clear reversal pattern; however, prices have been spending a lot more time above $ 800 than in prior months.