If you are one of those people who likes to show up at a lavish party right at the starting bell, after weeks or even months of arduous preparation (by others) then this stock is for you. This is one of the most powerfully bullish setups I have seen for a long time and the great news is that the price hasn't started moving yet, but all the technical indications are that it is about to.
On its latest 3-year chart we can see that after hitting a peak in 2018, Black Tusk Resources Inc. (TUSK:CSE; BTKRF:OTCMKTS; 0NB:FSE) has been in a persistent downtrend that continued through all of last year with the result that at its lows of last October and December it was priced at just 3 cents, or one-ninth of its price at its highs. Even now, after recovering somewhat in a Triangular base pattern, it is still just a little over one-sixth of its price at its highs. Just going on price alone it looks like the upper boundary of the downtrend shown could force it into another downleg, and while anything is possible, the volume pattern and volume indicators powerfully suggest that instead we are about to see a decisive breakout to the upside. There has been persistent heavy upside volume throughout most of April and this month which we can reasonably presume has cleared out most of the bears, and it has driven volume indicators strongly higher, especially the most important Accumulation line. This is clearly determined accumulation or mopping up of stock by those "in the know" ahead of a breakout and sizeable advance. Before leaving this chart we can observe a first target for the advance, which will be the quite heavy resistance in the 12 cent area, which will probably force a period of consolidation before further gains are made.
On the 6-month chart we can clearly see why the situation is becoming so explosively bullish, for we can see that the price and its moving averages are converging at a time when the base Triangle is closing up. This means that the time of breakout is at hand and it must occur soon.
The conclusion to all this must be that Black Tusk is an immediate strong speculative buy (speculative because it is a low priced explorer). However, note that volumes are painfully thin on the US OTC market, so it is better if possible to buy it on the Canadian market. You can buy it on the OTC market as volumes should improve going forward, but be sure to place a limit order to avoid being fleeced by the market makers. There are a very reasonable 46.6 million shares in issue.
Black Tusk Resources website.
Black Tusk Resources, TUSK.CSE, BTKRF on OTC, closed at C$0.05, $0.034 on 27th May 20.
Originally posted on CliveMaund.com at 9.27 am EDT on 28th May 2020.
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.[NLINSERT]
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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.