originally published Monday, January 04, 2021

All Base Metal & Mineral Stocks

There’s been some talk in recent days about copper’s rally spluttering, but with commodities generally revving up to soar, fuelled by massive money creation leading to a big ramp up in inflation, it seems unlikely that copper will be left behind and give up its recent gains – more likely is that it simply continues higher.

Given how copper has been forging ahead in recent months it seems remarkable that Libero Copper’s lengthy downtrend hasn’t ended already, but the good news is that, although it hasn’t ended, there are strong signs on its chart that it is about to, and that Libero will soon reverse decisively to the upside.

On its 6-month chart we can see the stubborn downtrend in force from early August, and although there is little indication in the price pattern that a reversal may be imminent, the volume pattern and Accumulation line are telling a very different story. There has been a big buildup in volume over the past month that has been accompanied by a soaring Accumulation line which indicates, well, accumulation. In contrast the On-balance Volume line has remained rather weak, and the reason these volume indicators tell such a different story on this occasion is that the Accumulation line is compiled on a “tick for tick” basis, whereas the On-balance Volume is only “end of day”. In a situation like this we trust the former more, because it is point for point method of assessing volume whereas the latter lacks information.

Given the former and that Libero is now oversold relative to a still rising 200-day moving average after a lengthy downtrend, the probabilities of its reversal top the upside now or very soon are considered to be high, and it is accordingly rated an immediate speculative buy here.

Libero Copper website Libero Copper Corp, LBC.V, LBCMF on OTC, trading at C$0.085, $0.066 at 11.15 am EST on 4th January 21.

Posted at 11.35 am EST on 4th January 21.

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 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 stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.