We bought late in October due to the belief that it was at the lower rail of an uptrend channel but it wasn’t and went on to break down from it by moving sideways. Apart from wasted time, no lasting harm was done because downside was limited with its strong volume indicators showing that it was under accumulation, and we are now up slightly on our purchase at that time.too early
On the latest 1-year chart it is now clear what was going on. The price drifted off in a gentle downtrend to form the Handle of a fine shallow Cup & Handle base pattern, this new interpretation is validated by the strong volume as it broke out upside from the pattern in the middle of last month.
This breakout was technically significant but hardly spectacular and would not have attracted much attention. Since it occurred the price has been consolidating the breakout with the dip of recent days, which was largely due to the sector being hit, throwing up an opportunity to buy it at a good price with the benefit of knowing that it has already broken out from the base pattern.
We can buy it here or buy more of it at a good price while it is still trading relatively quietly, knowing that it will probably attract a lot more attention once it breaks clear above the resistance at the top of the pattern which will be signified by its advancing through the CA$0.13 level where it stopped and turned back several days ago.
We stay long and Terra Balcanica is rated a strong speculative Buy here.
Terra Balcanica Resources' website.
Terra Balcanica Resources Corp. closed for trading at CA$0.105 on February 6, 2023.
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