It always helps if a stock’s general trend is up, and Augusta Gold Corp. (G:TSX.V: AUGG:OTCQB) remained comfortably within its uptrend even as the sector suffered a brutal decline from mid-April through mid-May, as we can see on its latest six-month chart below.
While the sector dropped hard, Augusta consolidated in a symmetrical triangle pattern that was followed by a renewed advance as soon as the pressure came off the sector.
There are a number of bullish factors to observe on this chart.
One is the strong volume pattern with most of the volume being upside volume, occurring on rallies. Another is the related strong uptrend in the accumulation line which continues.
Next is the bullish alignment of moving averages and last but not least the price being in a quite strong uptrend, and since it is nearer to the bottom of it after a heavy sector correction, it implies that it is likely to rally back up across the channel toward the top of it, which it has already started to do; and there is still room on its MACD indicator for it to do this.
So with a time correction from April looking complete, this looks like a good time to buy ahead of a more vigorous advance, although it would obviously have been better still to buy it in mid-May.
The 15-month chart is included below to show the full history, although technically it doesn’t show us much of use that we haven’t already seen on the six-month chart.
One thing we can see though is the origin of the resistance that recently capped the advance... above that there isn’t much resistance.
Augusta Gold has therefore rated a Buy here for a continuation of the uptrend, which is likely to accelerate, especially if the sector continues to recover as expected.
Augusta Gold Corp website.
Augusta Gold Corp., G.CSX, AUGG on OTC, trading at CA$2.16, $1.73 at 12.10 pm EDT on June 3, 2022.
Originally posted on CliveMaund.com on June 3rd, 2022.
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.
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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.
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