Expert Rates Mining Co. A 'Strong Speculative Buy'
Aug 3, 2022
August 3, 2022 (Investorideas.com Newswire) Expert Clive Maund shares his assessment of Omineca Mining and Metals Ltd. since its stock is currently inexpensive, and tells you whether he believes this stock is a Buy or a "goodbye." We are going to start the week by looking at a badly beaten-down gold stock. The fact that Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) is now very cheap is one big reason to buy it here, but that is not enough-we need to see evidence that Smart Money has made the same assessment and is buying the stock, and that we have as will now proceed to see. First, we will gain an overview of the severe bear market in the stock from its 2020 peak at about CA$0.75, using a three-year chart. After the worst of this decline it looked like it was basing from last October or at least from the December low, but then fell even more in recent months due to the extreme malaise afflicting the sector but despite dropping even further we see that it is still in a zone of strong long-term support and we can also just make out heavy buying appearing in recent weeks that has driven the On-balance Volume line higher, which we will now look at in more detail on the six-month chart. On the six-month chart, we can see that the pattern has formed in recent weeks looks like a Head-and-Shoulders bottom and the likelihood of this pattern being valid is greatly increased by the appearance of persistent heavy buying since early June that has driven the On-balance Volume line quite steeply higher. If this interpretation is correct then we are at a great entry point here as the price has just dipped to mark out the Right Shoulder low of the suspected H&S bottom pattern. Any advance from here is likely to be greatly assisted by an improvement across the sector-with the Gold Miners Bullish Percent Index at a very depressed 10% there is plenty of room for a sector recovery to take hold. Omineca is therefore rated an Immediate Strong Speculative Buy here. Omineca Mining & Metals website
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. Disclosures
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com