UC Resources Written up by Clive Maund
UC Resources has a great chart, and the fundamentals are most promising too as the company has a massive land package around the Noront Resources major discovery in northern Ontario (NOT went from C$0.50 to C$7.00 in the space of 2 months).
On the long-term 10-year chart we can see that the stock has completed a fine massive Pan & Handle base area that started to form back in 2000, after a severe decline. On this chart we can just see the price picking up from a low point in August which is believed to mark completion of the Handle correction. Of particular note is the high volume driving this advance - the volume profile is positive and On-balance Volume is strong - it is already at new highs. All of this is bullish and augers well for a period of strong advance.
Now we will examine the recent advance in much more detail on a 1-year chart. Here we see that after remaining in a downtrend for much of this year as the Handle of the large base continued to completion, the price staged a remarkably powerful breakout in September, gapping above the 200-day moving average on huge volume. This was a very bullish development. A fine Pennant then formed with volume dropping back in a most satisfactory manner before the price broke higher again, but instead of breaking immediately to new highs, which it would have been reasonable to expect, the price has continued to consolidate between the support and resistance shown, with an upward bias evident and strong upside volume resulting in the On-balance Volume line climbing to new highs. This action suggests that it will soon break out upside. The heavy volume throughout September and October is viewed as evidence of Smart Money piling in ahead of a breakout from the massive Pan & Handle base, which should lead to a sustained major uptrend resulting in large gains. UC Resources is thus regarded as most attractive here.
UC Resources website
UC Resources Ltd, UC.V, closed at C$0.59 on 31st October 07
Posted at 8.30 am EDT on 1st November 07
November 5, 2007
WHAT'S NEW
Oct 23, 2007: UC Resources Limited and Spider Resources Inc. Diamond Drilling Program at McFaulds VMS project in Northern Ontario + View More Oct 18, 2007: UC Resources Arranges Private Placement With Powerone Capital Markets Limited + View More Sep 19, 2007: UC Resources Limited Reports on Property in Vicinity of Noront's Copper - Nickel Discovery in the James Bay Lowlands and Recent Increase in Trading Activity + View More
Uc Res. is a gold and silver producing company based in Canada.
Uc Res. holds various exploration projects in Mexico.
Its main assets in production are MAR and LA YESCA in Mexico and its main exploration properties are MC FAULD'S LAKE in Canada and COPALQUIN in Mexico.