The charts show that Point Loma Resources Ltd. (PLX:TSX) is an energy stock that is under accumulation by someone—or something—with a lot of clout. On its 2-year chart we can see that it has been in a persistent and quite severe downtrend from its highs early in 2017, but in recent months a big buyer has showed up, repeatedly buying large blocks of stock, and he (she/it) appears to have started to put a floor under the stock at the support level shown. This big buying has driven both volume indicators steeply higher, a very bullish sign. As the 200-day moving average still has some way to fall before it catches up with the price, the stock could continue to base for a while longer. However, the recent aggressive buying means that it could start a new uptrend sooner rather than later, so anyone interested in this stock would probably be better off going for it now following the recent dip, since by delaying you could miss it.
The 6-month chart doesn't show us much that we can't see on the 2-year, but it does show recent action in more detail. One additional detail we can see on this chart is how oversold it currently is on its MACD indicator.
Conclusion: Point Loma is under heavy accumulation and believed to be basing in advance of a new uptrend that could be strong, and "come out of the blue." Therefore rated an immediate buy here on the current dip. Point Loma trades in light volumes on the U.S. OTC market and there are 42 million shares in issue.
Point Loma website.
Point Loma Resources Ltd, PLX.V, FMTNF on OTC, closed at C$0.21, $0.163 17th April 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.
CliveMaund.com Disclosure:
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.
