We were too early buyingearly in August as in the event it wanted to drop even further and then mark out a base pattern yet, even though it did drop to lower levels, its technical condition has continued to improve significantly so that it now looks most attractive after its latest dip, especially as the sector is now taking off higher.
On the latest 6-month chart, we can see the base pattern that formed following the drop into the final low late in September and how there has been a big buildup in volume in November, mostly upside volume, that has driven the Accumulation line strongly higher so that it is already at new highs, despite the latest dip.
This is viewed as strongly bullish, especially as the sector is launching into a major new uptrend. With it just starting to turn higher following the sharp dip of the past week, this looks like a great point to pick it up.
The 18-month chart gives us a broader perspective and enables us to see, in particular, that the intermediate base pattern now believed to be completed has formed at a zone of strong long-term support that dates back to the lows of late 2021 and early 2022.
This chart also brings into sharp relief the massive positive divergence between the strongly uptrending Accumulation line and the price makes it all the more likely that it is still very close to an important cyclical low here that should give birth to a major new bull market soon.
Nevgold is therefore viewed as most attractive here, and this is considered to be an excellent point to add to positions or make new purchases.
Nevgold Corp. closed at CA$0.38, $0.29 on November 30, 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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