Technical analyst Clive Maund outlines four resource stocks that he believes are at a great entry point right now.
Here is a heads up on some strong mining stocks that I will be writing up in more detail as soon as possible. These stocks are at great entry points, which may be improved by the continuing plunge in the broad stock market. In any case these stocks appear to be impervious to declines in the broad market.
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Enviroleach Technologies Inc. (ETI:CSE; EVLLF:OTC) C$1.90, $1.46, and Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB) C$0.27, $0.25, that we looked at again a few weeks back are still at great entry points, and appear to be impervious to the woes now afflicting the broad stock market. Both are believed to be at the tail end of corrections within strong bull markets and the news is that Enviroleach is one of the shortlist of four for the industry #DisruptMining Innovation Expo prize with the winner due to be announced this Sunday. If it wins both stocks will likely gap up on Monday; if it doesn’t it’s not a problem, because the fortunes of these companies do not depend on winning a prize.
Lion One Metals Limited (LIO:TSX.V; LOMLF:OTC) C$0.55, $0.448, is still at a great entry point here after it announced a couple of days ago that a surface sample from the Jomaki prospect returned 502 gram/ton gold over 0.70 meters, which is very rich mineralization. The stock broke sharply higher on this news but gave back 5% yesterday, and is still very near to base support thanks to the sector being battered again in recent days. PM sector newsletter writer Brien Lundin really likes Lion One here. The long-term chart shows that Lion One is at an excellent entry point after a long corrective downtrend back to the support at the upper boundary of a large Head-and-Shoulders top. IMMEDIATE STRONG BUY.
Silver Bull Resources Inc. (SVB:TSX; SVBL:NYSE.MKT), C$0.185, $0.15, is now at an excellent entry point. Coeur Mines finished selling its holdings in the stock a while back and the stock has been kept in check by some selling of warrants. However, the company announced a significant discovery last month, and management is about to change out of their scruffy old jeans and T-shirts, put on sharp suits and head for PDAC where the big miners will be present with their checkbooks looking for better juniors to invest in or buy, like this one. Technically Silver Bull is at a great entry point as it is in a strong overall uptrend and at support, and you may recall that we have been buying it on dips in recent weeks.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One and Silver Bull Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Enviroleach, Mineworx, Lion One and Silver Bull Resources.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Enviroleach, Mineworx and Silver Bull Resources, companies mentioned in this article.
Charts provided by the author.
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. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. 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 can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Mr. Maund does not own securities of Lion One, Mineworx, Enviroleach or Silver Bull Resources.
( Companies Mentioned: ETI:CSE,