Although it has risen a lot in recent months, American Creek does not look like it is done, and is believed to be at a “buy spot” here after its significant reaction from the start of the month. American Creek is a serious mid-cap gold and silver company with a range of properties including a couple of very promising properties in BC’s Golden Triangle, one of which, the Treaty Creek property, turned up excellent drill results earlier this month
. The company’s stock trades in good volumes on the US OTC market.
On its latest 3-month chart we can see why we are at a very good entry point here, given what is happening with gold and silver. After really big gains in June it settled into a Pennant consolidation this month that has seen it correct back from C$0.36 to C$0.24 with a clear line of strong support at about C$0.24. It is thus interesting to observe that several bullish “dragonfly dojis” have formed above this support in recent weeks, which are long tailed candles where the open and close are at the same price and at or near to the top of the day’s range. The appearance of these candles at this support are a strong indication that another upleg is “in the works” that will take the stock to new highs, and with the latest one appearing just on Friday at the support, it means we are at a good entry point here. Other positive factors worth noting are the bullish volume dieback as the pennant has formed, the negative reading of the MACD histogram bars, which are a sign that a rally is due, and the rising 50-day moving average coming into play beneath which is going to help to trigger it.
American Creek is therefore rated an immediate buy here for another big upleg, and an optional stop may be placed some way beneath the support “just in case”, as it is now considered unlikely that this support will fail.
Here is a link to the latest company presentation.
American Creek Resources website
American Creek Resources Ltd, AMK.V, ACKRF on OTC, closed at C$0.25, $0.188 on 24th July 20.
Posted at 7.15 am EDT on 27th July 20.