We have been accumulating Honey Badger Silver on and off since the middle of Summer. The first point at which we bought late in July was good, as was the purchase late last month. The purchase in September was not so good and we are showing a loss on it – the bull Flag spotted at that time did lead to a sharp move higher but then it reversed into a corrective downtrend that continued until late last month. With all that said, the good news is that it is shaping up well and we can can see on the latest 6-month chart below that when we bought late last month we managed to catch almost the exact low of what can now clearly be seen to be a completing Head-and-Shoulders bottom, having spotted a large bullish White candle that formed on heavy volume marking a bottom reversal. The rally out of this low on persistent strong volume to form the right side of the Head of the pattern is most auspicious.
The reason for this update now is both to bring to your attention this completing bottom pattern and also to point out that it appears to have dipped over the past couple of weeks to form the Right Shoulder low which means that it is at another favorable buy spot here. It should now rally to the resistance at the upper boundary of the pattern in the C$0.22 zone and once is breaks above that it should take off strongly higher, which is hardly surprising given where silver is headed.
We therefore stay long and this is a good point to buy or add to positions in Honey Badger Silver.
Honey Badger Silver website
Honey Badger Silver Inc., TUF.V, HBEIF on OTC, closed at C$0.19, $0.137 on 17th December 25.
Posted at 6.20 am EST on 18th December 25.