SCP.TO Sprott Resources has been consolidating from a decent breakout, but I feel I can see signs, that with this good looking bear rally as a broad market backdrop, and, we like broad market bullish backdrops, because they tend to increase average returns when taking bullish positions, there is a good chance, that with the mind boggling fundamentals and noteworthy foresight of management to produce results like that, something can be said for good judgement, and as a trading stock SCP makes a great candidate to play the runs and dips on a solid speculation loaded with cash, as we ease into the summer doldrums. A hedge stock with potential to rise through the likely volatility is a key descriptive word.
Go away in May doesn't apply to this play.
Technically, the price is very low in a breakout pattern to the upside, and I see what I think is an easy, but, may be a slow 3 to 4 months 50% to 100% gain in relative safety during the expected doldrums whipsaw.
The one question that will pop into your mind is "Why is the price so low"?
Just good luck! Baby out with the bathwater. Not enough playeres in the market to cover all the bases.
The answer is, There have been too many other distracting quicker moves that the traders are playing, leaving us lucky ones to move in on the likely money rotation that will tend to feed the ramp on this up move. Momentum is the attraction out there and this play is a more conservative following, not fast, but, this stock charts extremely bullish for an early stage uptrend interrupted by the crash.
In Level II observations I can see what appears to be a diminishing overhead supply.
This is early observations, and I'm starting to play the dips off this consolidation and averaging in.
SCP is just getting it's legs under it to head back where it belongs and possibly higher... $4.50 plus.
For something to think about, check out the recent insider buys, and we are not talking small stuff.
Shares out = 87,000,000
This gorilla likes the chart and fundamentals.
We have made some updated comments at this link...
StockCharts Public Chart List
GLTA Lostoutwest
Kenuck SmallCap Trader
National Post
Grandich
CBCnews
Please read our Complete Disclosure
No comments:
Post a Comment