BUY EPZ 88-82c - Least squares projects no downsidSUMMARY: Buy EPZ 82-87c, first sell target is top of the gap l above. Least curves fits shows selling momentum exhaustion and no downside from 82c
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At Master Resource Trader blog ,
https://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=79638
we've been fiddling with finding the bottom in some juniors, while the PM paper markets flame out. When fundamentals fail, a little math may provide the solution to finding a rebound in you PM portfolio.
Of course, the ruthless short-sellers do not ultimately care about charts and are willing to throw you a curve at any point. If that happens to you, do not have a fit - manage your losses at predetermined support and resistance levels, and you will have the capital to enjoy the bargains - such as we appear to have now.
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Going along with the previous entry on finding some bottoms in these juniors,
we can see EPZ.v has maintained a consistently decreasing slope over a yearlong bottoming process.
Projecting through the lows for another month shows there is essentially zero downside from the recent 82c lows,
currently at 87c. With $15M in cash, monetization of 100-200k oz. of gold at San Luis upcoming, and a pre-scoping
level project of some merit at Cerro Jumil, EPZ almost has the look of a value / takeover candidate, over and above
a decently valued spec play at around $40M market cap. There is an air-pocket gap above on the daily chart, which
has the look of free money.
Of course, we have seen many more developed companies than this trade in vertical,
low-volume descents this month, but we're getting close to cash levels here, with gold looking much higher by next
year. Next support level down is 69c. We probably wouldn't double down in this kind of pattern, but exit and try again
on strength through 82c or in a washout at lower prices
