While the immediate outlook for the Precious Metals sector is not too bright as discussed in yesterday’s gold and silver market updates, largely due to seasonal factors, unless that is they attack Iran, the charts for Black Tusk show outstanding strength, to the extent that it is worth going for without delay and this is a good candidate to switch to from weaker stocks.
On its 6-month chart we can see that the price is in the late stages of a fine Cup & Handle base and while the price pattern looks positive it is the volume pattern and volume indicators that stand out as being exceptionally bullish. We can see really big volume on rallies over the past couple of months that has driven volume indicators strongly higher, and it is thus rather surprising that the price hasn’t taken off higher already, but it seems it wants to complete its base pattern in an orderly manner and then advance. With the price near to strong support, downside is viewed as limited, and while it could wait for gold to turn up before it breaks out, basically it could do so at any time now.
The chart going back 20 months shows us the entire history of the stock and this chart makes clear that the angle of descent within the Handle of the Cup & Handle base is partly being determined by the red downtrend line whose point of origin is the peak back last October that has been constraining the price up to now, and clearly a break above this downtrend line will be a significant positive technical development. Another key point that this chart makes clear is that there is a band of quite strong resistance from the upper boundary of the Cup and Handle base pattern up to about the 22 – 23 cent level, but that said, the chart is so strong that it should not have too much trouble overcoming this when the time is right.
In light of all this Black Tusk is rated an immediate strong buy at the current favorable price.
There are only 17.4 million shares in issue and this stock does not for practical purposes trade on US markets as yet. This article is therefore aimed at Canadian subscribers and others of you who are set up to trade Canadian stocks.
Black Tusk Resources website.
Black Tusk Resources Inc, TUSK.CSX, closed at C$0.15 on 17th May 19.
FULL DISCLSOURE: Black Tusk Resources Inc. is a client of Stockhouse Publishing.