Whilst it is taking rather longer to get moving than we had anticipated, the fundamental outlook for Smartcool Systems Inc. (SSC:TSX.V, SSCFF:OTC.MKTS, R3W:FSE) and the technical outlook for its stock remains very favorable indeed. On the fundamental front, the just announced merger with Total Energy Concepts of Minnesota is viewed as a positive development, and on the technical front the stock is moving towards completion of a basing pattern as we will now proceed to see.
In the last update posted on the 1st February, the stock was not expected to back off again on account of the strength of the gap move up that had just occurred on huge volume. However, it seems it wanted to drop back and mark out the Right Shoulder of what now appears to be a Head-and-Shoulders bottom. Whilst this pattern could take a little while longer to complete, the positive volume pattern and volume indicators (not shown) suggest that it is likely to get moving sooner rather than later, and since it is down near to the Right Shoulder low of the pattern it continues to be rated a buy here.
Conclusion: the outlook for Smartcool continues to be very favorable and holders should therefore stay long, and it is at again at a good point to buy. Note that the favorable long-term charts may be viewed in the 1st February update.
Smartcool Systems website.
Smartcool Systems Inc, SSC.V, SSCFF on OTC, closed at C$0.055, $0.044 on 13th March 2018.
Read more about Smartcool here.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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Chart provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.