originally published Friday, March 31, 2023

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All Gold & Silver Stocks

We did a good trade with this back in January, buying it at 8 cents on the 18th and selling it on the 26th at 14 cents after a sharp high volume runup, resolving to possibly buy it back later after a reaction. It’s a good thing we sold it where we did because after running off sideways for several weeks it went into a long downtrend as we can see on its latest 6-month chart below. Management kicked the ball downhill by doing a 1 for 7 reverse split and then piled on the agony with a funding which is good news for us because all this has caused the stock to underperform the sector miserably at a time when it has been doing relatively well and it has brought the stock back into buying territory. Unlike many commentators I do not consider reverse splits to necessarily be negative, although I do recognize that it renews the opportunity for unscrupulous management to engage in further stock dilution. The obvious and real positive side of reverse splits is that by greatly reducing the amount of stock in issue, the potential for increased demand to drive the stock higher is greatly improved and of course it makes the stock more “respectable” so that it has greater appeal to more conservative and institutional buyers.

Technically, the picture for X-Terra looks more encouraging than for quite a while. The fickle mob have lost interest in the stock due to the downtrend with volume becoming lighter and lighter which is viewed as bullish especially as the price has marked out a strongly converging downtrend which is even showing marked convergence on a log chart, meaning that it is a bullish Falling Wedge. So it is interesting to observe that, having brought the price down close to a zone of quite strong support, this Wedge is now rapidly closing up and with it significantly oversold here, it looks well placed to reverse to the upside and break out from the Wedge into a new intermediate uptrend, and in this it should be helped by the gathering bullmarket in the metals sector generally. Yesterday’s candle, which saw it make new lows for the downtrend and then bounce back, may even mark the low of this downtrend.

X-Terra Resources is therefore rated a strong speculative buy here.

X-Terra Resources website

X-Terra Resources Inc., XTT.V, XTRRF on OTC, closed at C$0.65, $0.475 on 30th March 23.

Posted at 9.20 am EST on 31st March 23.

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 or securities 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 stock market technical analyst, Clive Maund is not a Registered Investment Advisor or Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.