We have done quite well with Mexican silver producer Guanajuato Silver which we bought back in February at a good entry point at about C$0.195, although after its recent reaction it is unchanged from when it was recommended early in July as part of the article
SILVER and 5 PROMISING SILVER STOCKS POISED TO ADVANCE. However, even though it has reacted back to strong support in recent weeks, its technical condition has continued to improve and not just improve, but improve greatly, with strong upside volume and its Accumulation line continuing to climb steeply. What this means is that we can expect to see another sizable upleg develop and with GDX and the XAU index breaking out to new all-time highs on Friday, which promises accelerated advance across the sector, and silver looking set to break above $50, this next upleg could easily exceed in magnitude those to date and the massive at least 6-month record volume on Friday suggests that this expected rally is imminent.
We therefore stay long and Guanajuato Silver is rated a very strong buy here and it is considered to be worth going overweight on this one.
Guanajuato Silver Company website
Guanajuato Silver Company, GSVR.V, GSVRF on OTC, closed at C$0.28, $0.206 on 22nd August 25.
Posted at 9.15 am EST on 22nd August 25.