RCKS talk

Friday, December 01, 2017 Derek Macpherson

RCKS Charts: NVO, GSC, PGE, RPX, BTR & TK


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In this edition of RCKS Charts, Keith has evaluated Novo Resources (TSXV:NVO), Golden Star Resources (TSX:GSC), Group Ten Metals (TSXV:PGE), Red Pine Exploration (TSXV:RPX), Bonterra Resources (TSXV:BTR) and Tinka Resources (TSXV:TK).


Lately we have been facing some profit-taking, position adjustment and realignment and possibly even some tax-loss activity within the mining and metals sector. Given the time of the year this is to be expected and normal activity. Some names do standout in our opinion:

Classic profit-taking:


Novo Resources (TSXV:NVO) – following a huge nine-fold run NVO has encountered profit-taking pulling the stock back to important support across $4.00-.75, a normal 50% retracement. Novo has begun to stabilize in this support zone. There is still some work to do as the various indicators fall into place with the price action but this is a good opportunity to accumulate the stock.

Three names which continue to act well:


Golden Star Resources (TSX:GSC) – momentum is rising, money flow (On-Balance Volume) is positive and the 50 day moving average has just crossed up through its 200 day moving average. Price has stalled in recent days in line with the backing and filling seen across many metal names. However, with the underlying indicators positive any dip is expected to be shallow and well-contained, offering an opportunity to accumulate. Support is solid across $0.98-1.03. Next targets are $1.22-.23 and $1.30-.33.


Group Ten Metals (TSXV:PGE) – underlying technicals remain positive, notably rising momentum, accumulation (On-Balance Volume), and the 50 day moving average has re-crossed above its rising 200day moving average. Next upside target is $0.45 with higher targets within reach. Support: $0.13-.15, $.10-.11.


Red Pine Exploration (TSXV:RPX) – although RPX continues to rise from its “double bottom” it is slipping a bit, which is not uncommon given the current environment. However, the underlying technicals remain constructive. Momentum continues to rise as does the On-Balance Volume line and the moving averages have crossed positively. This suggests any dip/pullback is likely to be well-contained. Support lies across $0.105-.115. Above $0.135 there is potential to $0.18-.19 and higher.

A couple of names making normal pullback tests:


Bonterra Resources (TSXV:BTR) – following its breakout from a six-month consolidation BTR ran to $0.72 and now is making a normal pullback test of the breakout. The trend points higher, the moving averages and momentum are rising. Even the dip in the On-Balance Volume has been well contained. All positive. 


Tinka Resources (TSXV:TK) – following a breakout from its consolidation pattern TNK spurted to $0.87 and has pulled back to test (a) its breakout in the $0.63-.65 area and (b) its rising moving averages. Completely normal activity. Momentum, trend and accumulation all remain positive. 

Keith Edwards, Chartman Market Analysis
Technical Market Analyst
 
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5C 1G6
 
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Company Specific Disclosure Details
Golden Star Resources Ltd. - TSX:GSC - None
Tinka Resources Ltd. - TSXV:TK - 1,4
Bonterra Resources Inc. - TSXV:BTR - None
Novo Resources Corp. - TSXV:NVO - 1,2,3,4
Group Ten Metals - TSXV:PGE  - None
Red Pine Exploration Inc.  - TSXV:RPX - 1,2,3,4

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