Can Collective Mining follow in the footsteps of its larger predecessor Continental Gold? Clive Maund examines the latest data after it’s one-year chart to see if it’s rising to the challenge.
Collective Mining Ltd. (CNL:TSXV) was started by the same team that worked up Continental Gold to become the biggest gold mine in Colombia and ultimately sold it to Zijin Mining for $2 billion, so to put it mildly the credentials of this team are excellent.
It should therefore come as no surprise that during the sector rout of recent weeks Collective Mining has held up remarkably well as we can on its latest one-year chart below which shows that it is still in an uptrend.
Chart courtesy of stockwatch.com
After it came to market about a year ago it had an initial spurt but then it went into a steep downtrend that lasted until early October, after which it reversed into an uptrend which continues.
After breaking higher in January it has been trending more gradually higher in an ascending trading range. While the volume pattern has been bullish throughout, what is of most interest to us is the persistent heavy volume that drove the latest upleg early last month and the way volume has dropped right back to a low level as the price has reacted gently back in recent weeks.
These are the characteristics of a bull flag, so we can expect to see another upleg begin soon that should be at least of the magnitude of the last one, so there is a good chance that this upleg will succeed in breaking the price out to new highs, after which it is quite likely that, perhaps after some consolidation, the price will accelerate to the upside.
Collective Mining is therefore rated an immediate speculative buy.
Collective Mining website
Collective Mining Ltd., CNL.CSX, closed at C$3.59 on 6th May 22.
Originally posted on CliveMaund.com on May 8, 2022.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers, and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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