It was looking increasingly likely last week that the sector correction had run its course and gold and silver are starting the week strong. It therefore looks like another major upleg will begin imminently in many gold and silver (and copper) stocks. The following silver stocks in particular look poised to advance. Note that if there are some stocks that we looked at before that are not on this list, it doesn’t mean that they are not liked and won’t perform, it’s just that these are the most liked at this time.
Dolly Varden Silver DV.V, DOLLF on OTC, C$0.91, $0.66 A fine countertrend Pennant has formed in Dolly Varden over the past month that has brought it back to support above its rising 50-day moving average and unwound its earlier overbought condition. The next upleg should start soon and it could be big.
GoGold Resources GGD.TSX, GLGDF on OTC, C$1.32, $0.965 A zig-zagging countertrend Pennant has formed in GoGold in recent weeks with the dip last week bringing it back to a nice “buy spot” above its moving averages that are set to cross soon and will on the next upleg that should begin shortly.
Guanajuato Silver GSVR, GSVRF on OTC, C$0.19, $0.135 – The correction of recent weeks in Guanajuato was exacerbated when it got whacked hard by a big funding at C$0.20. This funding was upscaled as a result of its being well taken up. The drop has therefore presented new buyers especially with an opportunity to pick it up cheap. The Accumulation line has held held up very well indeed on the drop which implies that it will soon advance anew, especially as the sector advances and the funding is digested.
Coeur Mining CDE, $4.88 has made what looks like a consolidation Flag over the past month which should launch it into another upleg soon.
Silver Mountain Resources AGMR.V, AGMRF on OTC, C$0.08, $0.055 Silver Mountain did break out as expected early in April but then, partly due at least to the sector correction, it came skidding back down again to lose all the gains and a little bit more. It’s oversold here, at a support level and some strong buying last week that drove the Accumulation line higher suggests it’s going back up again, so it is rated an immediate strong buy here.
Silver Storm Mining SVRS.V, SVRSF on OTC, C$0.16, $0.12 Silver Storm was propelled higher during the first half of April on very strong buying with very big volume up days. Small wonder then that it has since not reacted back much on the sector correction. Instead what has happened is that a fine bull Pennant has formed on declining volume which dwindled to a relatively low level last week as it held above a clear line of support at C$0.155 with the Accumulation line rising steeply. This implies that it will soon take off higher again and the next upleg is likely to be STRONG.
Posted at 9.00 am EDT on 6th May 24.