Metanor Resources Inc. (TSXV:MTO)
– This is an interesting stock. It has been in an ascending triangular pattern (a bullish continuation
formation showing accumulation as the pattern unfolds) since early 2016. Note the positive accumulation across the pattern on the Accumulation/Distribution
Line. Also, note the sharp upturn in the line since late-September along with the upturn in the momentum line. These are serious bullish developments.
What is missing is price, which suggests investors haven’t figured this out yet. (In Don Coxe talk, it is still a page 16 item. Once investors figure
it out and bid the price higher it will become a page 1 story.) Another interesting aspect is the top of the triangle coordinates with the down trendline
from 2008 so a move up through the top of the pattern ($1.12) would also be a reversal of a 9-year downtrend. Post breakout resistance lies across
$2.00-4.00, then $5.00-7.00. Support is at $0.70, then $0.45-0.55 (below $0.70 would be a breakdown of the entire pattern).
Osisko Mining Inc. (TSX:OSK) and Secova Metals Corp. (TSXV:SEK)
– Both have broken down with falling momentum and declining lines
of accumulation/distribution. As grasping falling knives is not a good investment strategy it is better to let them find their own floor/support level
then reassess the situations.
Cartier Resources Inc. (TSXV: ECR)
– huge rally from December 2015 to June 2017 ($0.04 to 0.38). Since then it has been correcting
that rally, achieving an almost perfect 0.618 retracement, back to natural support at $0.16-0.18. This is a normal rally-correction occurrence.
Obviously, a break of that support area would be very negative. However, on the positive side, On-Balance Volume has remained very constructive
through all this and medium-term momentum is approaching oversold. There is still some work to do in the short-term for all the pieces to align
but a patient investor can accumulate the stock.
Keith Edwards, Chartman Market Analysis
Technical Market Analyst
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Company Specific Disclosure Details
Metanor Resources Inc. - TSXV:MTO - 1,2,3,4
Osisko Mining Inc. - TSX:OSK - None
Secova Metals Corp. - TSXV:SEK - None
Cartier Resources Inc. - TSXV:ECR - None
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