RCKS talk

Wednesday, November 22, 2017 Derek Macpherson

RCKS Charts: MTO, OSK, SEK & ECR


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In this edition of RCKS Charts, Keith has evaluated Metanor Resources Inc.(TSXV:MTO), Osisko Mining Inc. (TSX:OSK), Secova Metals Corp. (TSXV:SEK) and Cartier Resources Inc. (TSXV: ECR).


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
 
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5C 1G6
RCKSTalk@RedCloudKS.com

Priced as of prior trading day's market close, EST (unless otherwise noted).
All values in CAD unless otherwise noted.

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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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