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:
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
Keith Edwards, Chartman Market Analysis
Technical Market Analyst
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5C 1G6
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New
Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is
to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business").
Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members
of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy
or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided
in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers
as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business.
This publication should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information
provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed.
Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes.
This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual
recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients
should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this
publication as customers or clients by virtue of having viewed this report.
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
1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.