We thought we were at the Right Shoulder low of a Head-and-Shoulders bottom when we bought Silver X Mining Corp. (AGX:TSX.V) late in August, but continuing adverse conditions across the sector have since seen it drop further, although not by much, and although this further drop has somewhat distorted the pattern, it has not so far invalidated it.
So now, with the sector looking set to turn higher against a background of extreme negative sentiment, we appear to be at an even better point to buy Silver X.
Yesterday, a rather bullish candle appeared on the chart, an “inverted hammer” on increased volume, which gives grounds for encouragement and makes a rally from here more likely.
One factor that we should bear in mind is that there is some chance that there will be a financing soon. However, it is thought likely that if so, it will be around the current price and well taken up.
Certainly, the strong Accumulation line bodes well for the stock and implies that any announced financing will not have an adverse impact.
Silver X is therefore regarded as a strong speculative Buy again here.
Silver X Mining Corp. closed for trading at CA$0.195, $0.144 at 10.11 am EDT on September 7, 2022.
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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.
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