In light of Silver X Mining Corp.'s significant rise in the price of its stock, expert Clive Maund reviews whether he believes the company is a good Buy.
Silver X Mining Corp. (AGX:TSX.V) is looking most attractive here after its reaction back of the past two weeks, which looks like a move to mark out the Right Shoulder low of a rather fine Head-and-Shoulders bottom, which is made more convincing by the positive volume pattern of the past couple of months that has driven the Accumulation line to new highs even as the price has reacted back, as we can see on the latest six-month chart below.
The stock was mentioned in an email concerning Algernon Pharma this morning, but it lost $0.01 today, which means that it is at an even better entry point as the support that it is now at is expected to hold.
At first sight, the longer-term 32-month chart, which shows all the history, does not look very encouraging as the price is still clearly stuck in a downtrend, but when you factor in the impressively strong Accumulation line that is already making new highs and the clear Head-and-Shoulders bottom that we have seen on the six-month chart, the picture looks much more positive.
With the price at or very close to what is suspected to be the Right Shoulder low of the Head-and-Shoulders bottom, Silver X is believed to be at a very good entry point here and is rated a Strong Speculative Buy.
A significant rise in the price of this stock implies that other PM stocks will rally too, and we are seeing positive patterns in other larger silver stocks such as CDE and HL, and juniors such as RSLV which has a pattern rather similar to Silver X, and more broadly in other larger PM stocks such as beaten down Lundin Mining (LUN.TSX).
Silver X Mining Corp. closed at CA$0.21, $0.163 on August 23, 2022.
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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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