originally published Thursday, August 23, 2018

Printable Version

All Gold & Silver Stocks

One of the bright spots amongst our stocks has been Aben Resources, a Golden Triangle BC exploration stock that was expected to benefit from the usual seasonal rally in these speculative plays. The good news is that it has easily fulfilled our expectations thanks to its first drill hole returning excellent results, as announced earlier this month. This caused the stock to spike dramatically on huge volume, which has major bullish implications for the longer-term. While the high volume gap higher does indicate scope for further gains before the drilling season ends, the overbought condition and looming end of the drilling season, when interest wanes, means that there is a growing temptation for holders to take profits and knock the price back down, which is a bigger risk in the case of Aben as the weak Accum line is a sign of Smart Money selling into strength. So with the favorable price on offer following the rally of the past couple of days, which looks like an unconvincing break higher from a bull Flag, we might as well be at the front of the line and take partial profits here - we are up over 3-fold on our initial purchase at C$0.13 in the Spring. So it is recommended to sell half of a holding and let the rest run, but sell the remainder no later than late Sept - early Oct, depending on what happens.

The 3-month chart below shows the powerful breaks higher earlier this month, but the unconvincing break higher from the bull Flag a couple of days ago which suggests that the advance could peter out and reverse, especially as the Accum line is weak.

The long-term chart shows the chain of drilling season runups that inspited our purchase of the stock in the Spring.. As we can also see, when the season ends and the drillers return to town to hang around in bars and brothels, investors lose interest and the stock can drop back hard on profit taking. This is why if holding you should sell half now, and hold out no longer with the rest than late Sept - early Oct, and maybe sell sooner if it weakens.

Aben Resources website

Aben Resources Ltd, ABN.V, ABNAF on OTC, closed at C$0.43, $0.33 on 22nd August 18.

Posted at 9.25 am EDT on 23rd August 18.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.