NOVO RESOURCES CORP...

originally published Wednesday, February 14, 2018

All Gold & Silver Stocks

An Email alert was sent out this morning at 11.09 am EST commenting on the breakout drive in the Precious Metals, which is expected to see it break out of its huge Head-and-Shoulders bottom pattern – when that happens PM stocks will go berserk – against the background of a crumbling dollar.

In that alert was also written the following about Novo Resources, which we have had a bearish stance on for months…

“Another point I want to make is that I am having a change of mind about Novo Resources NVO.V - we have been bearish on it for months, which has been the correct stance, but selling has been drying up and it is now thought that it is close to the Right Shoulder low of a Head-and-Shoulders bottom. It is at a very sensitive chart point being close to breaking out of a downtrend on an arithmetic chart, and with moving averages bunched not far above, so it could suddenly take off higher. Thus worth a shot here with a close stop at C$2.93. We will look at it later on the site.”

At the time of the alert this morning, Novo had barely moved and was priced at about C$3.10, but now, at the time of writing, it is trading at C$3.64, so it looks like some of you – and others – have put your best foot forward. The result of this is that it has broken out of the important downtrend shown on its 6-month arithmetic chart shown below…


On this 6-month chart we can also see clearly why we had been bearish on it in recent months, as it kept breaking lower on heavy volume, with its Accumulation line falling, until it fell into the vicinity of its rising 200-day moving average. Then, this year, downside momentum eased and just over the past few weeks downside volume has eased noticeably too, and it was most noteworthy that it was impacted little by the recent sharp drop in the sector, a positive sign. Now it looks like a Head-and-Shoulders bottom is forming which has allowed the 50-day moving average to drop down close to the price, so that we now have a potentially bullish bunching of price and moving averages for the 1st time in many months.

On its 3-month log chart we can see the Head-and-Shoulders bottom in more detail, and in particular how a couple of larger bullish white candles appeared on the chart in January. If the interpretation that a Head-and-Shoulders bottom is forming it correct, then clearly we are a great entry point, with it being very close to the Right Shoulder low – or it was this morning at the time of the Email alert - but it remains a buy right up to the “neckline” of the pattern, which is at about C$3.80 – C$3.90.


Novo Resources website

Novo Resources Corp, NVO.V, NSRPF on OTC, trading at C$3.48, $2.83 at 3.25 pm EST on 14th February 18


Posted at 3.45 pm EST on 14th February 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 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.