Yesterday's move in PGLC indicates that the $0.40 level is likely to hold for two reasons. Firstly, it is the 200DMA which is always a strong level to cross, whether it is on the upside or on the downside. Secondly, the base below that ($0.30 to $0.40) has been a very strong support. Thus, it has been taking a U turn as soon as it approaches that level. Another point is that the 50DMA is $0.50 which will provide the first resistance on its upside move. It is evident that the 50 DMA is above the 200DMA indicating some amount of technical strength. What it has to do is hold these levels, consolidate and ultimately break out of this range of $0.40 to $0.45 / $0.50. This has not happened because the volumes have been anemic (10 day average is half the 3 month average). Now that the consolidation phase is about to be over, the volumes are likely to pick up. In fact, that will be the first signal that something exciting is going to happen. Till this changes, breakout appears difficult. The odds of a uptrend have increased after the management recently expressed its desire to list on major exchanges within this year. Any investor who has faith in the future of Pershing Gold, will not like to miss this bus (maybe rocket). In 2014, the production may start which will change the cash flow dynamics of the company. PGLC will also discover more clearly how much gold its mines may hold. Then the valuation of the enterprise will become more objective and the price of the share will catch up with that. Usually, these mining companies take years to start delivering and, if PGLC is about to start production, there can be merit in buying the stock for the long term. The next few weeks should be very interesting to watch.