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Big Gains After China Cuts Off Rare Earth Supply to US
Contributed Opinion

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Technical analyst Clive Maund charts the stock of a Canadian rare earth company after China announces export controls.

We last bought Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) just over a month ago on the 8th June at what turned out to be a good entry point that was the result of being beaten down by a major funding.

Having seen the news about China cutting off the U.S. from rare earth metals, I figured that Defense Metals would be a big beneficiary of this action, since its production is in North America, and prepared a new chart for an update on it, but, mindful of the measuring implications of the Head-and-Shoulders top shown on its 6-month chart below and the staircase down pattern, got discouraged when it opened flat. So I put it on back burner and did other things but when I looked at it later in the day it had broken higher and, giving it further consideration I realize that given geopolitical realities, this is a stock that will probably go much, much higher.

It is believed that a major new uptrend in Defense Metals has just been birthed so we stay long and it is rated an immediate strong buy.

Defense Metals website

Defense Metals Corp DEFN.V, DFMTF on OTC, closed at C$0.24, $0.182 EDT on 10th July 23.

Posted on at 7.50 am EDT on 10th July 23.

Important Disclosures:

  1. Defense Metals is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals.
  3. Clive Maund: I, or members of my immediate household or family, do not own securities of: Defense Metals. My company does not have a financial relationship with Defense Metals. I determined which companies would be included in this article based on my research and understanding of the sector.
  4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  5. This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here. Disclosures

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. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

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