Technical analyst Clive Maund charts a gold explorer with projects in British Columbia that are getting a lot of attention.
Juggernaut Exploration Ltd. (JUGR:TSX.V) is a bright spot in the precious metals space as it has shown remarkable strength in recent weeks, forging ahead even as the sector has weakened in response to falling metal prices. On its latest 6-month chart we can see that a fine strong uptrend has been in force driven by strong volume. The question for us now is whether this uptrend is likely to continue, because if it is set to, then we it will be worth us taking advantage of the dip of the past couple of days to buy it at a slightly better price in expectation of a resumption of the advance.
The answer to the question is that yes, it does look set to continue, for two important reasons. One is that the sector looks set to rebound imminently, for reasons that we looked at in my recent metals update, and when that happens Juggernaut will be "swimming with the tide" rather than against it.
The other reason is apparent on the longer-term 2-year chart, on which we can see that, while it may stop to consolidate here because it is at resistance approaching its 2017 highs, volume had been strong on the advance and has resulted in volume indicators rising to clear new highs and looking very strong indeed, which with the sector turning higher suggests that, despite the current overbought condition at resistance, Juggernaut is likely to break out shortly to nee highs anyway, and it is therefore regarded as a buy again here on the current minor dip. Juggernaut trades in generally reasonable volumes on the US OTC market, where rather oddly it is up today on very light volume, while being down significantly on the Canadian market. There are 80.6 million shares in issue.
Juggernaut Exploration website.
Juggernaut Exploration Ltd, JUGR.V, JUGRF on OTC, trading at C$0.50 at 11.50 am EDT on 24th July 2018.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts. [NLINSERT]
Charts provided by the author.
CliveMaund.com Disclosure: The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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