People can argue the valuations of these companies and people would have a valid argument. But insofar as Royal Gold, Franco Nevada and more recently Wheaton have been sector leaders, OR seems to me to be as viable a candidate as any, with its lower risk North American asset concentration, growth profile and valuation that is closer to Sandstorm’s than it is to the big three listed above.
Ah, but all we care about is the chart, eh? Like the sector it belongs to, OR has touched short-term support today. I bought this pullback. The caveat is that if the sector is to explore lower pullback levels, so too may OR.
As to the daily chart, the trends in both the 50 and 200 day averages are up. That’s nice. Overbought is being relieved both in distance from the SMA 50 and in RSI. STO is flirting with sub-80 and I’d like to see that hold 80 in order to avoid further downside.
Turning to the weekly chart we see that the current support area is not just short-term support, but has also acted as support or resistance frequently over the course of the stock’s relatively young life. With weekly MACD triggered up I give it a pretty decent chance to hold here.
Regardless, as a portfolio manager (not a stand-alone trader) I found a place in the portfolio on this pullback. And the chart looks decent enough to highlight it. Bottom line is that if the sector correction is quick and/or shallow OR has already pulled back enough to end its correction. If we explore the equivalent of HUI 180 OR could get a test of the SMA 50 on daily chart above. Regardless, I’ve added it.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.