Not Investment Advice

It is important for you to understand, Allan Barry Laboucan is not a licensed investment advisor and all readers should consult a licensed investment advisor before making any investment decision and to consult the company’s latest regulatory filings to fully understand the risks. This site represents the opinion of Allan Barry Laboucan alone. Do not trade in securities you read about online unless you have independently verified all information and understand that speculating in small, speculative securities like those discussed on AllanBarryReports.com often results in total loss. Readers are responsible for their own trades.

Juniors Oversold Primed To Rally

August 21, 2019

Brought to you by:

Advance Gold (AAX.V) - Sirios Resources (SOI.V)

Walker River Resources (WRR.V)

 

When I make statements like juniors are oversold, I certainly don't mean all juniors. I cover a strong group of junior explorers and a couple small miners with potential to get larger.

 

Over the years, I've often thought about making my own ABR Index. The timing these days seems better than ever. It used to be that you could just look at the Toronto Stock Exchange Venture Index for a sense of what is going on in junior mining land.

 

It used to be dominated with juniors, now it has a variety of companies, still juniors in their respective sectors.

 

Looking at the group of my picks, you will see a similar trading pattern, which tells me it is more about a trading move than news related to the various stocks. They made discoveries, had big rallies going into the PDAC, then very quickly they have given back on average around 50% of their gains from bottom to top after they rolled over.

 

This is a typical trading action, it is called a Fibonacci retracement. It is based on the mathematicians finding of patterns in nature that also applies to other areas including stock trading.

 

I don't see much logic in it myself, but, traders pay attention to it and it can be a self-fulfilling prophecy. You can't ignore it, I like to call it a Fliponacci retracement that traders use as a reason to flip their stock. And they usually don't need much of a reason to flip stock.

 

I see us at an inflection point with the price of gold and gold stocks. Gold is oversold and the juniors on our list of picks are even more. Recent action in gold reminds me of late August 2018. Which was followed by 6 months or so of a stronger market. Dare I say...bullish. We are on the doorstep of that kind of action.

 

All the best,

 

Allan

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