Clive P. Maund

We did a good trade in Silver One Resources last year, buying it and selling it at the points shown on its latest 6-month chart blow. The reason that we took profits where we did was that it had arrived at the top of its uptrend channel in a very overbought state so it was suspected that it would either consolidate for a while or react back. In the event, due to the continuing strength in silver, it pressed somewhat higher, but overall it has been in a price / time consolidation since we sold evidenced by its moving sideways across the uptrend channel to contract its lower rail.

The good news is that silver’s sudden break higher yesterday triggered very heavy buying of Silver One which rose on the biggest volume since 2021 on the Canadian traded stock and there was also a volume breakout on the US traded stock. This is very bullish and it means that, despite being temporarily constrained by resistance at the highs of recent weeks, it should now break above them and proceed to advance towards the top of the channel again.

We can get an idea of how far this new upleg is likely to get by looking at the long-term 12-year chart. On this chart we can see that there is a definite band of resistance in the C$0.85 – C$0.93 zone, so it is thought likely that the new upleg will take it up to this level in short order and in due course it is likely to break above this resistance and continue on towards the all-time highs in the C$1.02 zone. The current advance obviously constitutes an advance out of the 2nd low of the giant Double Bottom shown whose 1st low formed from 2018 – 2020.

Silver One Resources is therefore rated an immediate strong buy and it is not considered to be very speculative.

Silver One Resources website

Silver One Resources Inc., SVE.V, SLVRF on OTC, closed at C$0.65, $0.46 on 12th January 26.

Posted at 9.20 am EST on 13th January 26.