Source: Clive Maund for Streetwise Reports 11/05/2018
Sector expert Clive Maund reviews recent activity for this company’s stock and sees blue sky ahead.
Although American Pacific Mining Corp. (USGD:CSE; USGDF:OTC) hasn’t advanced much on a net basis since it was recommended on the site a few weeks back, its technical condition has strengthened considerably, as we can see on its latest charts.
On the 3-month chart, selected to show recent action in detail, we can see that right after we bought it rose sharply for a couple of days on heavy volume, punching clear above its falling 50-day moving average, which was very bullish behavior. Since then it has reacted back on much lighter volume, which is quite normal, and then has steadied, which has put it in position to commence another upleg.
The key point to note here is that although this first upwave did not achieve much price-wise, it has resulted in a marked strengthening of the technical condition of the stock, which has laid the foundation for bigger gains later. Look at this way—you don’t bring a train to a stop and get it moving in the opposite direction at the same speed all at once. It normally takes time and buying power to bring a prevailing downtrend to a halt and reverse it. This is why the first upwave is classed as a preliminary breakout. The second upwave, which looks imminent, will be the true breakout, which should see the stock vault well above the October high and advance away from its 50-day moving average, which will then turn up.
We’ll put recent action into context by zooming out to look at the 8-month chart, where we immediately see that this stock is still very cheap, as it got as high as $0.31 as recently as last May, which is almost four times the current price. So there is a lot of “blue sky” above, which it should find it a lot easier to rise through because the entire sector looks set to take off higher as the dollar goes into reverse.
What all this means is that American Pacific Mining is even more attractive than it was when we went for it a few weeks back, and it is rated an immediate strong speculative buy.
American Pacific Mining website.
American Pacific Mining Corp. closed at $0.085, CA$0.105, on Nov. 2, 2018.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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American Pacific Mining Corp.
Source:: The Gold Report