Silver Co. Is Now at an Excellent Entry Point, Expert Says
Technical Analyst Clive Maund takes another look at Silver North Resources Ltd.(SNAG:CVE;TARSF:OTCMKTS) as he believes it is continuing "to shape up well."
Silver North Resources Ltd. (SNAG:CVE;TARSF:OTCMKTS) continues to shape up very well as it prepares to advance out of a large base pattern that we will review in this update.
With respect to the fundamentals of the company, you are referred back to the last update on it, which included a range of informative and interesting slides from the company's investor deck, and you are referred to the Investor Deck itself for more detailed information regarding the geology of the company's properties, etc. Here we are going to look at the latest charts for the company's stock to see why it is rated a strong buy again here.
On the latest 6-month chart, you will see that the stock has been recommended on three prior occasions at opportune "buy spots," soon after which it rallied. This update is regarded as timely, as it looks like we are at another one right now. In the last update, it was opined that the price would as a first step break of the trading range that had been delineated at the time it did and it is now clear that an uptrend channel is developing, and as the price has just reacted back over the past couple of weeks to support at the lower rail of this channel, this looks like a very good point to buy Silver North or add to positions.
While the boundaries of this channel will probably need adjusting with the passage of time, the adjustment should be in favor of shareholders as the uptrend is very likely to accelerate, especially if silver itself really gets moving as expected.
Before leaving this chart, there are two further worthwhile points to observe. One is that the corrective action of the past couple of weeks has now completely unwound the earlier overbought condition, as shown by the MACD indicator, and so fully restored upside potential. The other is that just over the past few days, we have seen a bullish crossover of the main moving averages, which puts the stock in a stronger position to advance.
On the 2-year chart, we can see that the price is starting to advance away from the third low of a Triple Bottom, and the key point to note here is that the upper boundary of this base pattern is the band of resistance shown at the top of the chart.
This means that whilst the price remains below this resistance, we are generally in a favorable zone to accumulate the stock and secondly, it also means that the price breaking above this resistance will mark the "official" start of a major bull market and that is the point at which we can expect to see marked acceleration to the upside. The overall strong Accumulation line, the now more favorably aligned moving averages, the increasing volume this year, and the improving momentum (MACD) all suggest that this breakout is likely to happen sooner rather than later.
Zooming out again, the 5-year chart presents a most encouraging picture. On this chart, we see that the Triple Bottom base pattern has developed at a very low level following a severe bear market.
This chart clearly shows a big upside from here, especially if silver really gets moving as expected and once it gets above the nearby resistance, it can be expected to run at the next significant resistance level, which we can see is at about CA$0.45 - CA$0.50 and given that it is likely to accelerate once it gets out of the base, it could proceed to this level with alacrity.
Silver North Resources is therefore rated a Strong Buy here for all time horizons, especially as it is now at an excellent entry point after its countertrend dip over the past couple of weeks.
Silver North Resources Ltd. (SNAG:CVE;TARSF:OTCMKTS) closed for trading at CA$0.165, US$0.1153 on June 12, 2024.
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Important Disclosures:
For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver North Resources Ltd.Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company.For additional disclosures, please click here.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.