We have done some very good trades in Guanajuato Silver this year, and although it dropped further after we bought it back on 10th October you may have dumped it on the general sell / hedge rec issued before the smackdown almost 3 weeks ago.
Even though we are aware that a silver advance now may only be the B-wave of the expected 3-wave A-B-C correction in gold, silver and PM stocks, Guanajuato Silver looks like it has seen its worst and like it is a buy here for reasons that can be seen on its latest 6-month chart below. On this chart we can see that it has dropped back to a support level near to the lower boundary of the large broadening channel shown where it is oversold and with its MACD histogram (bars) creeping back to the zero line, it looks ripe for a rally, which is believed to be being signaled by the clear volume breakout yesterday when a smallish bull hammer candle formed.
Guanajuato Silver is thus rated an immediate buy here, and even if we later see the expected C-wave decline in the sector later to complete the corrective phase, it probably won’t drop below the current level.
Guanajuato Silver Company
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Guanajuato Silver Company, GSVR.V, GSVRF on OTC, closed at C$0.34, $0.242 on 5th November 25.
Posted at 9.00 am EST on 6th November 25.