General Moly (GMO) Confirms Breakout Gap, Insiders Are Buying
General Moly has confirmed the March 5th breakout when Hanlong partnered with them on Mt. Hope. It has never violated $3.25 which was the previous resistance.
Bruce Hansen, the CEO of GMO, made a large purchase on the April 28th which shows his support of this company. This is a definite show of confidence to shareholders as Nevada is reviewing their water rights application. Actions speak louder than words. He meant what he said that the water rights is a minor and temporary issue which will be resolved quickly.
The stock continues to push higher in a weak market due to the European financial crisis. It is important to note the stocks relative strength compared to the overall market and especially when you compare in to economically sensitive commodity stocks.
The chart shows the gap was never filled and it found support at previous resistance. Even in a weak market the chart shows major institutional demand. I expect as the market comes out of this correction General Moly will continue to move higher.