The world didn’t come to an end today as it seems some investors had feared Friday when renewed selling came into the market toward the end of the day. Some Canadian investors, in particular, may have been a little skittish given that today is a holiday in Canada – no stock trading – while U.S. and world markets are open. They didn’t want to be caught in what they feared might be a gap-down Tuesday morning. Fear and greed, as always, rule the markets.
Rainbow Resources (RBW, TSX-V) got caught up in that “Friday Fear Factor” and it seems just a couple of skittish investors panicked and hit the sell button late in the session, taking RBW down to an area of strong support. No chart damage was done, as John shows below, with RBW continuing to trade in a horizontal channel with several indicators remaining positive. Rainbow is drawing closer to the start of a drill campaign at its Big Strike Project, and prospecting is also now underway. Gold and Silver are recovering, and the markets this week have the potential of rebounding sharply out of very oversold conditions.
As of 8:00 am Pacific, the Dow is up over 100 points. The TSX and the Venture could both experience a gap-up tomorrow as opposed to a gap-down.
Note: Both John and Jon hold positions in RBW (Terry does not).