Technical analyst Clive Maund charts a gold explorer with projects in British Columbia that are getting a lot of attention.
Juggernaut Exploration Ltd (V:JUGR) 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 new 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 Ltd, JUGRF on OTC, trading at CAD 0.50 at 11.50 am EDT on 24th July 2018.
Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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