Soma Gold Corp. (SMAGF:OTCMKTS;SOMA:TSXV) has shown great relative strength in recent weeks compared to the sector as a whole, which has fallen back quite hard over the past month.
On its latest 6-month chart, we can see that it appears to be readying to break out of a large bullish Rising Triangle whose upper boundary is the resistance zone associated with the highs of last April / May.
There has been good upside volume in recent weeks that has driven the Accumulation line quite steeply higher. Moving averages are in bullish alignment, and momentum (MACD) is becoming increasingly positive, so it looks like it is going for a breakout above this resistance soon, especially as the sector is looking poised to turn higher after its recent drop (silver broke higher yesterday)
On the long-term 10-year chart, Soma looks like it is advancing to complete the right side of a large Cup base. There is a zone of fairly strong resistance at and above CA$1.00, which arises from potential sellers who got hung up in the large top area that formed before the plunge early in 2020.
So if the price succeeds as expected in breaking out of the Rising Triangle that we looked at on the 6-month chart, it will be free to run quite swiftly up to this resistance, which would result in good percentage gains from the current price.
Soma Gold is therefore rated an Immediate Speculative Buy here. The stock trades in light but acceptable volumes on the US OTC market, and there are approx. 91 million shares in issue.
Soma Gold Corp.'s website.
Soma Gold Corp. closed at CA$0.66, $0.485 on August 21, 2023.
Originally posted at Clivemaund.com at 9.35 am EDT on August 22, 2023
Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
For additional disclosures, please click here.
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.