Charts of The Day: NVO, IRV, LIO
Even though I only own companies that I feel are worth more than their price, I do enjoy looking at charts now and then. My top 3 holdings (Novo, Irving & Lion One) all seem to be stuck in consolidation patterns. Basically I expect them to just churn for a bit until a break out occurs and a lot happens in a short amount of time… Boring until it’s not.
- Novo Resources (Zoomed in)
NVO (Daily).
- Novo Resources (Zoomed out)
NVO (Daily)
… The blue resistance line has successfully been able to reverse the share price of Novo for the last two years which means it should be a very big deal when it breaks. The fact that we seem to be putting in a large double bottom as well as forming a H-S reversal pattern looks very good to me in that light. In short, we have a down sloping resistance line which we are approaching fast and two reversal patterns suggesting that the trend is changing from down to up. We are nearing the end of the line and something should break within a month’s time.
- Irving Resources (IRV)
IRV (Daily).
… Irving Resources looks to be trading in a similar fashion as it did only a couple of months ago. To me it looks like a cup-and-handle continuation pattern and that we are currently forming the handle. If/when the blue line breaks, I expect another big jump.
- Lion One Metals (Zoomed in)
LIO (Daily)
- Lion One Metals (Zoomed out)
LIO (daily).
… Lion One looks to be forming another H-S reversal (bottoming) pattern just like it did back in 2015/2016.
Closing Thoughts
All three stocks appear to be nearing the end of either a reversal pattern or a continuation pattern. What they have in common is that their share prices are coiling (low volatility) with no clear direction yet. The same patterns were present in all three stocks just before they made their last big runs. I think this is a good barometer for the junior sector at large since we still haven’t seen those 2015/2016 moves even though gold has broken out to new 5-year highs. Something has to give soon, and if sentiment/buyers finally return, then I hope all three will go from boring to exciting in a hurry. Meanwhile… I patiently wait for the calm to switch into a storm as it always does.
(Note!: These is not trading recommendations. I am not a trader and I own these stocks based on their fundamental merits. Always do your own due diligence. I own shares in all companies mentioned, which I have bought in the open market and am thus biased. Novo and Lion One are passive banner sponsors on my site. )
Best regards,
The Hedgeless Horseman
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Enjoy your comments. Investor from Belgium
Thank you Eddy, glad you like my work 🙂
Best regards
HH: when will you do an update on GFG Resources Inc, its lost ground and it seems they switched priorities. Your thoughts.
All your analysis is much appreciated….follow you on stock house. Invester in Novo,Pacton, DeGray,GFG, Irving, Marramont,lion one, Chalice Gold..your thoughts
Jim
Hi Jim,
I don’t really know to be honest. Am not following GFG that closely as of late. I want to see them getting some better hits in Canada but Newcrest being involved in RSH is a big deal IMHO. Newcrest are one of the best majors out there. Also, there has been a lot of insider buying so that would suggest it is very cheap ATM.
I think Novo and Pactor have seen or are near a bottom (but you never know). You know I am very bullish based on Risk/Reward in Pilbara. DEG has been punished hard because of them needing to fund Indee. I hope that is solved soon and that would be an obvious catalyst for at least putting in a bottom in my view. Miramont is trickier since we don’t yet know what the final drill results are, but they are cashed up and got another big project. Question is when they will be able to drill it. I am basically waiting for more news out of Miramont before I make a decision to sell some or buy more. I love the R/R in Lion Gold and I just think it’s flying under the radar. Incredibly cheap just based on what they got already and I think they will find a lot more gold. They are pretty much the only junior who owns a whole alkaline gold system. I have been in and out in Chalice Gold but am not so up to date lately. Last I checked they had a lot of cash and a few very large projects in good jurisdictions. Chalice seems to have smart management and to be more like a prospect generator so perhaps not the biggest leverage to gold but it feels like a relatively safe bet.
Note: This is not investment advice. I haven’t done enough DD on all stocks you mentioned to even have a very well informed opinion but those are my thoughts off the top of my head.
Best regards,
HH