After a bottoming/basing technical phase, and with a new drill program starting things could get interesting here. You know early explorers, hole drillers, are dependent on the results of the drilling. They can get sent hard north or due south, depending on the results. It’s not unlike Biotech stocks with FDA approval/disapproval.
That is a caveat. You can make your year, if not your career on one explorer. You can also bust out, lose your original capital and swear off the segment forever. So I try to be extremely selective and personally fundamentally depend on the input of a geologist (MC, who also owns an early stage cow pasture himself, which I may highlight in the future if I feel it is appropriate) who guided me/us well with Great Bear Resources (bought by KGC) and more recently Talon Metals (TLO.TO/TLOFF).
MC had also given me the original heads up on American Eagle Gold (AE.V/AMEGF), which did well until one day it tanked due apparently to not preparing the market for what was a less than stellar drill hole. I checked in with him yesterday and he is still high on the project. The reasons for my interest are the drilling campaign upcoming. The link includes several videos breaking down the situation. If you have any interest at all, please click the link and watch the videos before acting. I found the Steve Garwin vid very informative.
All of which is to say that some people I trust think this is a highly prospective project. But one drill hole can tank (and has tanked) the stock. That’s life in exploration investment (and it is speculative investment, especially when you get stuck bag holding as I temporarily did with TLOFF, was -36% now +120%).
All disclaimers – including my status as a top-down macro analyst, not a stock analyst – behind us, on to the chart. I am presenting this because it’s an opportunity for consideration by certain people. Nothing more, nothing less. I own it, increased it, and will likely add more if the story and chart hold up. It’ll take a lot of patience.
The shaded base is what has my interest. There was a big pop, I believe on news of the drilling campaign. The moment I was ready to take a partial profit, the bid fellow out of it and it dropped back into the base. So I added more. I cannot advise what the darn stock will do. But I can advise that a base like this, resting on the 50 day average, appears to be a technical buying opportunity for anyone who would buy this lottery ticket. Risk managed to suit below the SMA 50, although bag holding is often a tactic as well for junior exploration investors (ref. my TLO bag) if the prospective story does not materially change.
I would never highlight a stock like this just for its chart. But given the view of my geo associate, it is among 2-3 such situations I am speculating with. Mind the caveats. It’s an FYI for a certain type of speculator only.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
