As you may know, I have a friend in junior mining analyst ‘Otto Rock’ from IKN. As is noted each week on the last page of NFTRH reports, I recommend his work because it is put forth honestly and he calls it like it is, whether that makes him look good or not. Point being, I trust the guy as a nugget of gold among the lumps of coal that make up the gold stock analyst community.
Preamble aside, he has highlighted Streamer Royalty company Sandstorm (SAND) as a fundamentally much improved company and it will thus be added to the list of preferred quality items in NFTRH. Those items are my own picks, those of Otto and ones I’ve picked up from other analysts I trust, one of whom resides in the NFTRH subscriber base.
Otto has not called SAND a buy yet but in my mode of selling the high fliers and buying the more moderate ones (assuming it’s within the list of companies I favor) and being light on gold stocks I bought SAND yesterday pre-breakout (along with then-depressed AAU and PVG). I want to highlight SAND’s technical status for anyone interested going forward.
The daily chart is very tentatively breaking out out from resistance today. It could be bought now if you are comfortable playing momentum and can either strictly sell a loss of 3.10 or stand downside to support at 2.60 (MA 50) to 2.80 (MA 200). If you are unsure, there is no harm in just keeping it on watch in the event of a sector correction (which will come eventually) or correction in the stock, realizing it is now viewed more positively from a fundamental standpoint.
The weekly chart shows the next resistance level of 3.80, if it can break and hold above current resistance. So for technical momentum (not my usual mode) that would represent about 18% upside, assuming the sector does not correct before hand.
Buy Target: Investors w/ stock on watch: 2.80, Momentum traders: 3.10 to 3.25
Sell Target: Investors- Undetermined, Momo’s- 3.80
Stop Loss: Investors- Below 2.60, Momo’s- failure of breakout at 3.10
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.