Can Collective Mining comply with within the footsteps of its bigger predecessor Continental Gold? Clive Maund examines the newest information after it is one-year chart to see if it is rising to the problem.
Collective Mining Ltd. (CNL:TSXV) was began by the identical group that labored up Continental Gold to change into the most important gold mine in Colombia and in the end offered it to Zijin Mining for $2 billion, so to place it mildly the credentials of this group are glorious.
It ought to due to this fact come as no shock that throughout the sector rout of current weeks Collective Mining has held up remarkably properly as we are able to on its newest one-year chart under which reveals that it’s nonetheless in an uptrend.
Chart courtesy of stockwatch.com
After it got here to market a couple of yr in the past it had an preliminary spurt however then it went right into a steep downtrend that lasted till early October, after which it reversed into an uptrend which continues.
After breaking greater in January it has been trending extra progressively greater in an ascending buying and selling vary. Whereas the amount sample has been bullish all through, what’s of most curiosity to us is the persistent heavy quantity that drove the newest upleg early final month and the best way quantity has dropped proper again to a low degree as the worth has reacted gently again in current weeks.
These are the traits of a bull flag, so we are able to anticipate to see one other upleg start quickly that must be at the very least of the magnitude of the final one, so there’s a good likelihood that this upleg will reach breaking the worth out to new highs, after which it’s fairly possible that, maybe after some consolidation, the worth will speed up to the upside.
Collective Mining is due to this fact rated a direct speculative purchase.
Collective Mining web site
Collective Mining Ltd., CNL.CSX, closed at C$3.59 on sixth Might 22.
Initially posted on CliveMaund.com on Might 8, 2022.
Clive Maund has been president of www.clivemaund.com, a profitable useful resource sector web site, since its inception in 2003. He has 30 years’ expertise in technical evaluation and has labored for banks, commodity brokers, and stockbrokers within the Metropolis of London. He holds a Diploma in Technical Evaluation from the UK Society of Technical Analysts.
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