Master Trader gets bullish on some PM junior.... unfortunately, that doesn't include GPR just at the moment. We're officially "neutral," maintaining our "buy weakness" at 86c,sell strength over any gaps after newsletter pump pieces, yada yada, into the $1.22 to 1.35 area. To be sure, GPR does bear some signs of the sneaky 4 day short-covering we've had in some PMs this past week. But unless some gold knight rescues the majors before a final round of whacking, we may tread and retrace in other PM issues for a bit longer.
At Master Resource Trader, we don't look for nice bottoms on sandy beaches, just in our charting software holed up in our multi-screen computing cave. We like the curves we're seeing in EPZ.v as per below.
SUMMARY:
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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MRT blog entry on EPZ (see also MAI pieces),
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