On 15th March it was decided it was best to step aside from Enviroleach Technologies Inc. (ETI:CSE) and Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB), because it looked like the correction that was already well underway by then would continue and result in us being able to buy them back at a better price. This has since proved to be the case, although we are "slow off the mark" with Enviroleach, which could have been bought back late in March at a very good price just above C$1.00. Nevertheless they are looking very good again now, for the reasons we will briefly look at. There is no reason to talk about the positive fundamentals of these stocks because they were discussed earlier.
Starting with Enviroleach, an 11-month chart enables us to view the entire price track from last May–June, and to delineate its strong uptrend, which is believed to remain in force for good reason—because the volume pattern continues to be strongly bullish, which is why the Accum-Distrib line continues to make new highs. This is very bullish and points to a new upleg dead ahead, and in fact it has already started, even though the price has yet to break out of the corrective downtrend channel—it started right after what is believed to be the low for the correction late in March. Other bullish factors to observe are momentum (MACD) turning higher and the bullishly aligned moving averages.
The 6-month chart for Enviroleach enables us to see recent action in more detail, and in particular that Friday's candlestick, because of its position, looks like a bull hammer, especially as most of the volume was upside volume, which is why the Accum line advanced further. This chart also makes direct comparison with the Mineworx chart lower down the page more easy, because it is for the same timeframe.
On the 6-month chart for Mineworx we see that we have a somewhat better entry point to buy back than with Enviroleach, because it is still not far above the low of its corrective downtrend. This is a good point to pick it up again, because it is just above a zone of support which itself is just above its rising 200-day moving average. Momentum (MACD) has just turned higher indicating that a new uptrend should now start, and we have a bullish volume pattern with recent light volume indicating that the correction is done and a strong Accum line making new highs, suggesting that another upleg is in the works.
Conclusion: it's a good time to buy back both Enviroleach and Mineworx in the reasonable expectation of a new upleg getting underway soon, which should be sizeable and result in good gains.
Enviroleach Technologies website.
Enviroleach Technologies Inc, ETI. CSX, EVLLF on OTC, closed at C$1.54, $1.29 on 20th April 2018.
Mineworx Technologies website.
Mineworx Technologies Ltd, MWX.V, MWXRF on OTC, closed at C$0.19, $0.166 on 20th 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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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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Mineworx. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Mineworx and Enviroleach.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mineworx and Enviroleach, companies mentioned in this article.
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.