In this article Clive Maund takes a long view of this Canadian silver explorer, flashing back to three years ago to review its trajectory.
Norseman Silver Ltd. (NOC:TSX.V)’s Taqueren Project in western Argentina has been described as a “world-class exploration play” and, in recent days, this claim has acquired serious credibility with news of the company receiving assays of bonanza grade copper at the site with the significance of this being appraised in the article Silver Junior Assays Bonanza-Grade Copper in Samples From Argentina Project posted on Streetwise Reports.
“Norseman is therefore rated an immediate speculative buy here.”
The reason that Norseman’s stock hasn’t moved much yet on this news is thought to be a combination of slow-witted investors not cottoning on to the significance of these assays coupled with the rout of the past week across the sector.
There are two big factors making Norseman stock attractive here for investors. One is the bonanza grade copper assays just mentioned which should obviously have a beneficial effect on the stock price going forward, and the other is the fact that at its present price the stock looks cheap after a quite severe bear market has lopped two-thirds off its price.
We can see the bear market in its entirety on the 3-year chart and how the price has been marking out what is believed to be a base pattern in recent months at a relatively low level and Friday’s news makes it more likely that the support at the bottom of this potential base pattern will hold.
On the 6-month chart we can see that, after hitting a low at about CA$0.165 early in February, Norseman has been marking out a potential base that can be described either as a Triple Bottom or a Triangle.
Being still close to the support at the lower boundary of the pattern it is considered to be at a good entry point, and it was recommended in an email alert sent out before the open on Monday.
Although we are bottom fishing here as it is still close to recent lows and its moving averages are still in bearish alignment there is thought to be a good chance of its turning higher here, fundamentally because of the very positive news detailed above, and technically because it is oversold relative to its 200-day moving average and does look to be forming a base pattern at a low level.
Norseman is therefore rated an immediate speculative buy here.
Norseman Silver Inc., NOC.CSX, NOCSF on OTC, closed at CA$0.20, $0.164 on April 26, 2022.
Originally posted on CliveMaund.com on April 26, 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.