Big trending moves tend to be followed with big consolidations, even for undervalued markets like gold, silver, and mining stocks.
There certainly have been some fabulous trending moves (higher) in the metals and miners over the past two years, and investors are wondering what shape the consolidation will take…
And if there are some “hottie” plays to consider while the sideways drift plays out.
Well, for the senior and intermediate gold/silver producers, it’s rare for numerous individual component stocks to rally while the ETFs go nowhere or decline.
For the CDNX, there are numerous opportunities that present themselves, but first… a look at the CDNX itself:
This is one of the biggest inverse H&S patterns in the history of markets. The implication is that years and maybe decades of higher prices lie ahead.
Having said that, the index has more than doubled over the past year. That alone necessitates a pause in the action.
Coupled with the fact that the index has arrived at the neckline zone (about 900-1100), a pause is almost “mandatory” here…
And it’s in play now.
What about EWA, Elliott Wave Analysis? Well, I own the Captain Ewave newsletter, and here’s a look at the daily CDNX chart, from the perspective of the “Captain” of the EWA ship:
Here we see the same type of consolidation/pause as with the regular chart… and a projection of incredibly high prices to follow!
What about some “leaders of the CDNX pack” during this consolidation? Well, here’s a look at one that I brought to the attention of savvy Streetwise readers while the CDNX was drifting lower, Sparc AI Inc. (SPAI:CSE; SPAIF:OTCQB; 5OVO:Frankfurt):
Here’s a look at it now:
Wow! The stock roared to my short-term target of CA$1.60, AND hit my medium-term target of CA$1.85!
Here’s a link to the entire article I did on this technical marvel.
The exciting news, to finish this week in style, is that I have a new stock that I’ll be bringing to eager Streetwise Reports readers very soon… a stock that looks just like Sparc AI did… right before blastoff!
All that’s left to say… is stay tuned and have a great day! Thanks!
Special Offer for Streetwise Readers: Please send me an Email to [email protected] and I’ll send you my free “CDNX PMI Hotties On The Move!” report. I highlight key juniors in the CDNX Precious Metals Index (PMI), with buy and sell tactics included in the report! Junior mine stock investing isn’t for everyone, especially with size, but as this gargantuan gold bull era rollout continues, these miners look set to outperform everything! I write my junior resource stocks newsletter 2-3 times a week, and at just $199/12mths it’s an investor favourite. I’m doing a special pricing this week of $169 for 14mths. Click this link or send me an email if you want the offer and I’ll get you onboard. Thank-you!
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