Expert Says Silver-Copper Stock In A Good Place To Buy

Expert Says Silver-Copper Stock In A Good Place To Buy

Source: Clive Maund 04/15/2024

Technical Analyst Clive Maund reviews Hercules Silver's charts to explain why he believes it is a Strong Buy.

After its huge copper find in Idaho last fall, Hercules Silver (OTC: BADEF) is thought to be as much a copper stock as a silver stock, hence the color of the charts in this article. On the back of the news about the discovery of copper, there was a huge runup, rising almost 8-fold in October and November.

However, it's one thing to make a big discovery but quite another to build the infrastructure and mine to get the material out and to market — that takes a lot of time and a lot of money.

Hence, after the excitement about the discovery drove the price up, the inevitable reaction and hangover set in and this included a nasty drop, a big high-volume gap down at the end of last year visible on the latest 7-month chart below that would have left a good many investors, especially latecomers, stunned and shell-shocked, but just as the runup on the discovery usually gets overdone, the hangover reaction can get overdone on the downside and this is believed to be the case with Hercules, especially as a major metals bull market has just begun in recent weeks with a standout being copper.

Thus, it is interesting to observe that as Hercules has tracked sideways since the start of the year following the plunge, its Accumulation line has risen to make new highs, which is rather remarkable and has definite bullish implications, and momentum (MACD) has recovered, trending steadily higher to the point …

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Full story available on Benzinga.com

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