We
unloaded Blue Moon Zinc for a quick 100% gain in a week (ex-costs and on our latest purchases) at the top of an “island reversal” at the start of the month, with the resolve to buy it back again on a significant reaction, if there was one, and if it still looks OK. Well, there has been and it does.
On its latest 3-month chart we can see where we sold it at the top of the island at a good price, because it hung around near that high level all day. The next day it dropped hard on high volume, then looked like it was forming a tiny base above support at 7 cents, but we didn’t believe it had hit bottom, and a few days ago it broke this minor support and proceeded to drop to 6 cents, where there is more support and more chance of it turning up again. It is starting to look attractive again here and rated a buy again, with the knowledge that it might drop a bit further to the next support level at 5 cents. Buyers should note that it could hang around for a while in the 5 – 6 cent area for a while before taking off higher again, which it should do as the overall picture remains bullish.
Conclusion: Blue Moon is a rated a buy again here and especially if it should drop a bit further to the 5 cent level. It could zig-zag around for a while in this area marking out a small base pattern before advancing anew.
Blue Moon Zinc
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Blue Moon Zinc Corp, MOON.V, BMOOF on OTC, trading at C$0.06, $0.055 at 2.23pm EDT on 13th October 17.
Posted at 3.10 pm EDT on 13th October 17.