Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Golden Triangle Stock on Course for 'Summer Drilling Season Ramp'

Streetwise Reports, Streetwise Reports
1 Comment| May 1, 2019

{{labelSign}}  Favorites
{{errorMessage}}

Technical analyst Clive Maund explains why he believes shares of this Golden Triangle explorer are at a good entry point.

Click to enlarge


I consider Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB) to be among the best in the Golden Triangle. Note that the seasonal speculative spikes that we are expecting in these stocks may not get underway until the late summer, so this is more about positioning at good prices ahead of time.

Aben Resources is shaping up nicely for its traditional summer drilling season ramp, which has happened like clockwork during the past three summers. We cottoned on to this annual cycle last year and rode its last ramp, selling half of our holding very near to the top. The reason that Aben and other Golden Triangle stocks have this annual cycle is that drilling ceases during the brutal British Columbia winter and restarts in the spring, so speculators get bored during the winter months when the stock price suffers from attrition selling with few buyers around. Aware of this, we put our best foot forward and bought in back last November, right after it plunged at the point shown on the 6-month chart below, figuring that it was either at or close to its winter low, and that turned out to be the case, so we are now up 50% on this purchase already with much more to come if past behavior is anything to go by. We bought it again in March but this purchase was not so well timed. Even so, we are up.

Click to enlarge


A moderate uptrend appears to have become established in Aben and within this uptrend a quite sharp rally occurred a couple of weeks ago, with the price then reacting back within what looks like a bull Flag that we will now look at in more detail on the 3-month chart.

Click to enlarge


On the 3-month chart we can examine the supposed bull Flag of the past couple of weeks in more detail, and bearing in mind how the sector dropped quite hard over the past several weeks, this looks like a ball being pushed underwater here. It looks like a countertrend reaction, especially as volume has dwindled to become light, which is characteristic of a valid Flag. While we cannot rule out a minor short-term dip to the lower Flag boundary, basically it looks about ready for another sharp upleg probably to the upper boundary of the channel. It is therefore rated an immediate buy again here.

The longer-term 3-year chart shows a remarkable chain of regular drilling season spikes occurring during the late summer, early fall. While there is no guarantee that we will see another one this year it is considered likely, and it certainly looks like it is shaping up for one.

Click to enlarge


The final point and the main point to make about Aben here, is that it looks like it is building up to another dramatic summer spike which is most likely in the July–September timeframe, and will obviously involve it blasting out the top of the channel shown on our charts. That is what we are positioning ourselves for with this. The point to become concerned if it should start to shown signs of deterioration would be if it broke down from the channel and then below the support shown in the 19 cent area. That is not expected to happen but is worth mentioning. Otherwise it looks like is on course for another speculative summer ramp, and is believed to be at another good entry point here.

Aben Resources website.

Aben Resources Ltd, ABN.V, ABNAF on OTC, closed at C$0.21, $0.166 on 26th April 19.


Tags:

{{labelSign}}  Favorites
{{errorMessage}}

Comments

If Aben Geo's can find the 2018 "bonanza" gold grades to be continuous (around 20 feet of 2 oz's Gold per ton) then it could be a very strong discovery year.
(234)
May 2, 2019

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today

Featured Company