SIM has formed a classic double bottom and has found solid support at approx the 170 level. We have seen an increase in volume on any recent upmoves on SIM indicating that there is clearly professional demand for SIM. The longer term downtrend has also been broken , during this breakout we saw a surge toward the 76.4% Fib retracement level indicating additional professional demand. After the subsequent breakout Simmers retraced back to it's POC(Point of Control) on lower volumes which clearly shows us that the professionals did not participate in the retracement move. Simmers has now formed new support at approx 220 which is the previous resistance area. The next clear level is 400 for SIM and then 580 with 750 being the ultimate target level for 2009. Gold futures are also extremely bullish currently with clear target levels above $1000/oz. Simmers should follow suit in rising north, especially as there is overwhelming evidence of professional demand (buying) taking place on SIM.
other than the fact that their gold production is well underway, they have great reserves, good projects in the pipeline, excellent management, well funded and in need of a rerating (they are currently rated as uranium suppliers, which trade at a significant discount to gold producers). The only negative in my book, is the huge open CFD positions, which could force this share to swing like a wild cat