Northstar Clean Technologies Inc. (ROOOF:OTCMKTS) was one of three stocks highlighted in a Market Notebook article yesterday morning. After that was posted, it had a countertrend dip back toward support but on a very light volume, so it looks like it should turn up again here or soon. On its latest 6-month chart below, we can see that several days back, it made a strong breakout — on big volume and accompanied by a gap — from a Head-and-Shoulders bottom, and the post-breakout reaction back toward support at the breakout point is quite normal and is viewed as presenting a better point to buy.
This H&S bottom is a little unusual in that it has an embedded smaller H&S bottom within it, also marked on the chart, that the price broke out of earlier also on good volume, although it was not as great as on the breakout from the larger one. On-balance Volume is strong, but on the other hand, the Accumulation line has been and is still weak, which is thought to be the result of rallies (so far) being sold onto by those who bought at higher prices in zones that we can readily identify on longer-term charts, such as a 2-year.
We look for the Accumulation line to improve as the advance continues. The trend is certainly higher, with a bullish moving average cross occurring now and again on a 2-year chart; we can see that the price appears to be preparing to break out of a large base pattern that has been building out since approximately May of last year.
Fundamentally, there has been a lot of good news out on Northstar, including that it is to receive a CA$7.08 million grant from Alberta and it has completed a CA$10 million investment from Tamko, and it has completed major funding, so there a little immediate risk of another of those.
Northstar Clean Technologies closed for trading at CA$0.205, $0.152 at 2.00 pm EDT on August 4, 2023.
Originally posted at Clivemaund.com at 2.20 pm EDT on August 4, 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.