We bought speculative microcap stock Nevada Sunrise on several occasions earlier this year, having spotted that it was under persistent accumulation, but so far it has been about as exciting as watching paint dry. However circumstantial news in suggests that this may be about to change – and fast!!
Yesterday, Lithium Corp soared 924% on rumours that the US government may develop / invest in it as they did with Lithium Americas Corp. The following 3-month chart shows what happened…
The reason that this matters to us is that Nevada Sunrise Metals may be next – why? – because the company is undervalued relative to assets, has an exciting new gold project, potential for antimony but mainly because it owns 2 Nevada Lithium projects.
Looking at the latest 18-month chart for Nevada Sunrise, we see that the reason that it did little for months was that it was completing the Handle of what is now clearly a fine low Cup & Handle base and the good news is that the pattern is now complete. The marked increase in upside volume yesterday as the price rallied to the upper boundary of the base pattern is thought to be due to people like us putting 2 and 2 together and figuring that Nevada Sunrise could well be the next to launch. It’s in position to break out and it could soon or even imminently and the resulting gains could be really big, especially in percentage terms.
On the 5-year chart we can see that the fine Cup & Handle base that has formed over the past 18 months at a very low level followed a brutal bear market from the 2022 highs when it briefly touched C$0.40. Most auspicious is the persistent strong uptrend in the Accumulation line, especially this year, which is a sign of relentless Smart Money accumulation of the stock. With volume building and the Cup & Handle pattern complete, breakout looks imminent and upside from this low level is massive with potentially huge percentage gains in prospect and now, as set out above, we have a catalyst…
Although the very long-term chart below is of limited use technically, it does show us that the stock has been trading since the late 1990’s and that it got to much higher levels, especially around the peak of the Precious Metals sector bull market in 2011. This chart also makes clear that the leverage from the current low level is truly massive, so that if it does decide to get moving, the percentage gains that result could be huge.
We therefore stay long and this is viewed as an excellent point to buy or add to positions. There are approximately 113 million shares in issue as of late August 25.
Nevada Sunrise
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Nevada Sunrise Metals Corp., NEV.V, NVSGF on OTC, closed at C$0.035, $0.023 on 2nd October 25.
Posted at 8.27 am EDT on 3rd October 25.