Expert Says Graphite Stock Is Still a Strong Buy

Technical Analyst Clive Maund shares an update on Graphano Energy Ltd (GEL:TSXV; GELEF:OTCMKTS), which he still believes is a Strong Buy.

Since we looked at Graphano Energy Ltd (GEL:TSXV; GELEF:OTCMKTS) toward the end of May, the company has made solid progress advancing its projects, and on the 26th of this month, the company announced that it had staked an additional 20 mining claims on the western side of its existing 100%-owned Lac-Aux-Bouleaux (LAB) project on the strength of strong exploration results.

This is important news as the new claims more than double the holdings comprising the LAB Project. As CEO Luisa Moreno states, "We are pleased to have extended our LAB claims, significantly enhancing our exploration potential in the area. The LAB region, home to an historical graphite mine and adjacent to the operating Lac-des-Iles mine, is the only graphite-producing area in North America. Our exploration results at the LAB project have been very promising, reinforcing our commitment to expanding our footprint in this region."

The intensifying debt crisis is expected to lead to a capital flight from all debt instruments and fiat generally into tangible assets and specifically into commodities such as graphite, all of which are expected to soar. This means we are now believed to be at a favorable point to buy Graphano Energy stock as it is at the third low of a large Triple Bottom base pattern and is thus at a very good entry point, as we will see when we review its charts towards the end of this article.

Many people, perhaps not surprisingly, do not know much about the uses to which graphite is put, and the following slide, lifted from the company's investor deck, provides some information on the characteristics of graphite and its uses and an additional reason for showing this slide is that it points out that China accounted for 65% of natural graphite production in 2022 but last Fall