Sector expert Clive Maund reviews recent activity
for this company's stock and sees blue sky ahead.
Although American
Pacific Mining Corp. (USGD:CSE; USGDF:OTC) hasn't advanced much on a net
basis since it was recommended on the site a few weeks back, its
technical condition has strengthened considerably, as we can see on its
latest charts.
On the 3-month chart, selected to show recent action in detail, we can see
that right after we bought it rose sharply for a couple of days on heavy
volume, punching clear above its falling 50-day moving average, which was
very bullish behavior. Since then it has reacted back on much lighter volume,
which is quite normal, and then has steadied, which has put it in position to
commence another upleg.
The key point to note here is that although this first upwave did not
achieve much price-wise, it has resulted in a marked strengthening of the
technical condition of the stock, which has laid the foundation for bigger
gains later. Look at this way-you don't bring a train to a stop and get it
moving in the opposite direction at the same speed all at once. It normally
takes time and buying power to bring a prevailing downtrend to a halt and
reverse it. This is why the first upwave is classed as a preliminary
breakout. The second upwave, which looks imminent, will be the true
breakout, which should see the stock vault well above the October high and
advance away from its 50-day moving average, which will then turn up.
We'll put recent action into context by zooming out to look at the 8-month
chart, where we immediately see that this stock is still very cheap, as it
got as high as $0.31 as recently as last May, which is almost four times the
current price. So there is a lot of "blue sky" above, which it
should find it a lot easier to rise through because the entire sector looks
set to take off higher as the dollar goes into reverse.
What all this means is that American Pacific Mining is even more
attractive than it was when we went for it a few weeks back, and it is rated
an immediate strong speculative buy.
American Pacific Mining website.
American Pacific Mining Corp. closed at $0.085, CA$0.105, on Nov. 2, 2018.
[NLINSERT]
