Dr. Clive Roffey
Every day there are numerous announcements on the http://kitco.com website by a plethora of small mining companies, mainly associated with the venture capital section of the Toronto Stock Exchange. The information ranges from the commencement of drilling exploratory holes, to the acquisition of new mining rights, to the discovery of metal intersections, to the actual reporting of drilling results. Much of this data is not just for information to investors but is marketing hype for the share price. It is impossible for the normal investor or trader to assimilate the quantity of data published on a daily basis in these reports. Decision making is difficult enough without having to sort through reams of publicity hype from every penny stock miner on the bourses.
I have thus decided to examine the reports published in the Kitco site and to analyze the chart data of these stocks for clients. This is a new weekly service that will be designated with an A suffix to our reports. Today's data is 11A as we have already sent our fortnightly data in issue 11.
I will only detail those stocks that are of interest and that fit with our trading volume parameters. There are usually from six to eight stocks detailed per day on the Kitco site but only one or two will be of interest. This will help the investor to sort out the wheat from the chaff. The following data is from Friday Jan 7th to Tuesday 11th and the next data set will be sent this coming weekend.
Minera has developed a trading range between 50c and 60c. It will need a break above 60c to trigger the next upside movement. Wait for the price break. |
Jilbey has a trading range with support at 50c and resistance at 60c. It will need a move above the 60c level to trigger any upside potential. There has been a strong decline in volume over the past six months. I would expect to see an increase in positive volume on any upside break. Wait for the break on good volume. This will be the buy signal. Until then stay on the sidelines. |
RNC has banged up against its major overhead selling resistance level at $1.65. There has been a recent increase in trading volume in this stock and a break above $1.65 on good volume would trigger a buy signal. |
Searchgold has also hit a serious selling resistance level after the oscillator buy divergence in September. This stock is likely to have a period of churning before the next surge. Any price drift back to 18c would be a buying area. |
GRS has an interesting chart. It had a resistance level at 45c. This was broken and a second platform has emerged. A move above the second resistance at 55c on good volume will trigger a buy signal. |
Novagold is a hold. The main up trend remains intact. Furtjer upside can be expected but I would not chase this stock. If you own Novagold hang onto the shares. |
Robex has halved since its August peak at 89c. But is has retreated back to test eh major support level at 42c. I expect this level to hold and would rate Robex as a buy at its current trading level. A further upside move above 60c on good volume should see the previous top at 89c exceeded. |
Cream Minerals is a real penny gold stock. The volume is spasmodic but the chart is interesting. It has formed a flat bottom triangle during the past year that is coming to the point of resolve. I look on this as a speculative buy at the current price and a full buy once the price has moved above 30c on good volume. |
Tasgold (AU:TGD) is a stock I like for my Australasian readers. It has traded in a flat range for the past 18 months between 12c and 18c. The MACD has broken its downtrend and looks ready for lift off. During the past week it shot above its 15c resistance of the past six months. I like the look of this stock and would add it to an Australasian penny stock portfolio. |
Macmin Silver (AU:MMN) very interesting chart. It has been locked in a tight trading for the past nine months. I believe it has entered its natal period and is ready for a serious upside lift off. The recent announcement of drilling results sparked a jump in the share price.
I like the look of this data and would add it to my portfolio of Australasian penny stocks. |
For FREE trial data contact :-
Dr. Clive Roffey
info@utm.co.za
www.charts.co.za
www.shareaction.co.za
11 January 2005
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