Many Precious Metals stocks are looking poised to advance soon following their corrective retreat of recent weeks. One that is looking very attractive here is Barsele Minerals Corp. (BME:TSX.V; BRSLF:OTCQB) which broke out of a Double Bottom base pattern in January with a big move that saw it double in price in about two weeks after which it formed an intermediate top before having a normal reaction back to strong support in the vicinity of its now bullishly aligned moving averages which reaction served to correct the big January impulse wave.
We can see this action on the latest 6-month chart shown below, while a 1-year chart shows to advantage of the Double Bottom that formed last year.
Of particular note on our 6-month chart is the way the reaction of recent weeks has fully corrected the earlier overbought condition (MACD) that developed as a result of the big impulse wave. The pronounced bull hammer/dragonfly candle a few days ago is thought to mark the end of the correction.
The volume pattern is clearly strongly bullish with a preponderance of upside volume and this explains the continued rise in the Accumulation line even as the price was correcting back, which is a sign of internal strength that portends renewed advance, so the setup looks most auspicious.
Barsele Minerals is therefore rated a strong speculative Buy, especially on minor dips and anyone still holding should stay long for recovery. Trading on the US OTC market is very light and for this reason, it should be avoided — if you do attempt to buy it on this market be sure to use limit orders.
Some of you may recall that we bought Barsele about a year ago and then got stuck with a losing trade (unless you ditched it) when it tripped to lower levels as a result of sector weakness and then had to wait and watch as it marked out the Double Bottom. The current setup looks considerably better than a year ago especially given the improved outlook for the sector.
Barsele Minerals' website.
Barsele Minerals Corp. closed at CA$0.39, $0.255 on February 17, 2023.
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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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Chart provided by the author.