We have been showing a loss on Loop Insights which has reacted back further than we expected, apparently due to a big seller driving it lower. However the good news is that he is believed to have been flushed out, and the appearance of a large bull hammer on the chart on Friday accompanied by a volume breakout certainly is a strong indication that this is the case. This candle is a sign that the bottom is in and that the stock should now proceed to break out of the short-term chart shown on our 3-month chart and advance.
The fundamentals for the company continue to be favorable. We therefore stay long and this is a good point for anyone who doesn’t already own the stock to take a position. The stock does trade on the US OTC market where trading volume has been light in the past, but has ramped up a lot over the past 6 weeks or so, and may soon be acceptable. If buying on this market be sure to place a limit order. There are about 60.5 million shares in issue.
Loop Insights Inc, MTRX.V, VRZPF on OTC, closed at C$0.14, $0.097 on 26th June 20.
Posted at 8.50 am EDT on 29th June 20.