The Toronto Venture Exchange (TSX-V) started 2014 off with a blistering 20% rally which gave way to a shallow pullback since the beginning of March:

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CDNX_Daily_5.2.2014

Summer seasonality tells us to sell in May and come back in late-August. However, the recent double-bottom at 980 offers a solid downside reference point - a move back above 1021 on the TSX could set in motion the next leg higher which could easily target the 1150-1170 area.

We remain firmly of the opinion that the junior resource space put in place a bear market bottom during 2013. A summer rally would go a long way towards confirming this thesis and help to stir the animal spirits for the next resource bull market.