Silver stock New Pacific Metals Corp. (NUAG:TSX.V; NUPMF:OTCQX) has results due out son, and its charts suggest that they are likely to be good. We bought it back at the start of November and it was the subject of a couple of brief updates later that month, and hung on through a nasty drop in January, since which time it has more than completely recovered, so that we are now up on our first purchase, as we can see on its latest 6-month chart.
Since the start of the month it appears it have been marking out what approximates to a bull Flag, with the predominantly white candles and strong Accum line suggesting that it will soon proceed to break out upside from this pattern, and above the zone of resistance shown up to C$1.65, and such a breakout could of course be occasioned by positive drilling results, which are believed to be due out soon. The strong Accum line is a sign that insiders are buying ahead of this.
We thus stay long and new purchases are in order here, but holders and new buyers should place a stop just beneath the nearby support shown, just in case it breaks lower.
The longer-term charts make for interesting viewing. On the 6-year chart we can see that after completing a fine Saucer base, New Pacific has been romping ahead in a vigorous uptrend, which strong volume indicators suggest is not about to end, and the noteworthy thing is that it hasn't required a bull market in silver itself to achieve this, which implies that if silver does finally get moving, the advance in New Pacific could even accelerate.
Finally the 20-year chart shows us the wild history of this stock which has made a number of gigantic swings. On this chart we see a possible target for the current uptrend – the resistance at the 2010 – 2011 highs. One other thing it makes clear is that you don’t want to stick around "once the music stops." New Pacific trades in rather light volumes on the US OTC market and there are 132 million shares in issue.
New Pacific Metals Corp website
New Pacific Metals Corp, NUAG.V, NUPMF on OTC, closed at C$1.55, $1.16 on 14th March 2018.
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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Charts 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 stock market 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.