Blue Lagoon Resources has been kept under observation over the past couple of weeks as it has been looking like it is readying to break out into another sizable upleg. A slight deterrent has been the until now weak Accumulation line, but on the other hand the On-balance Volume indicator has been and is strong relative to price. The stock has been held in restraint until now by an ongoing financing priced at C$0.25, but
a couple of days ago it was announced that the third tranche of this has been completed
with
Crescat Capital, Phoenix Gold Fund and
Nicola Mining increasing their positions.
With only a cursory glance at the company’s website it quickly becomes clear that it “has the goods” with substantial gold assets and is set to go into production later this year.
As we can see on the latest 6-month chart for the stock it has edged higher over the past couple of days and is now in position to break out of the Pennant consolidation pattern shown into another upleg that could be substantial.
Blue Lagoon Resources is therefore rated an immediate strong speculative buy.
Blue Lagoon Resources website
Blue Lagoon Resources Inc., BLLG.CSX, BLAGF on OTC, closed at C$0.30, $0.2015 on 1st April 25.
Posted at 9.20 am EDT on 2nd April 25.