My attention was drawn to Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) by a number of bullish articles on it, in particular one by Adrian Day that was posted a few days before its major high-volume breakout on the 17th.
It has risen significantly this month and while we are not normally minded to chase after stocks that have already taken off higher, I consider it worth bringing it to your attention here because of the strong bullish implications of this breakout which is believed to mark the start of a major bull market in Osisko for reasons that will soon become apparent which has important implications for the sector as a whole, it being a gold royalty company.
It very quickly becomes clear why the breakout in Osisko this month was so significant when we look at its long-term chart going back to 2014, for here we see that it has finally broken out above the strong resistance at a line of tops that goes back to 2015, on its eighth attempt to do so, so clearly this was an important technical development that in all probability marks the start of a major bull market.
On its 1-year chart, we can see recent action in much more detail. The most important point to note is the very high volume on the breakout this month on the 17th. This high volume is a sign that the breakout is genuine.
Everything about this chart is bullish — the trend is up with moving averages in bullish alignment, momentum positive, and the strong upside volume this month driving the On-balance Volume line higher in a robust manner.
However, there is no arguing the fact that after its strong rise this month which has opened up a considerable gap with its moving averages, it is short-term overbought, but that said this breakout was so significant that it has created support in the CA$18 - CA$19 zone (the former resistance level) which should now serve to put a floor under the price on any reaction.
The main point is that the breakout this month was of such importance that it is thought to mark the start of a major bullmarket in Osisko that will eventually result in much higher prices, and this should hardly be surprising considering the way that the financial system is "flying apart" in a manner that can be expected to result in vastly higher prices for gold and silver which most investors at this time would probably consider to be in the realms of fantasy, even many of you reading this.
The conclusion is that Osisko Gold Royalties has just made a major breakout that promises much higher prices in the future for it and not just that, but much higher prices ahead for gold and silver themselves. It is rated a strong conservative buy on all minor dips.
Osisko Gold Royalties' website.
Osisko Gold Royalties Ltd. closed for trading at CA$21.10, $15.58 at 2.45 pm EDT on March 30, 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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