Silvercrest Mines Update...
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The purpose of this update is to draw readers' attention to the performance of Silvercrest and its future upside potential. Silvercrest was recommended on the site back in January at the optimum moment a few hours before it broke out from the 2-year long Handle of a giant Pan & Handle base formation. However, it is yet to break out of the entire Pan & Handle base pattern, and thus upside potential - and leverage on capital - remains large.
On the 1-year chart we can see the point at which the stock was recommended in January, and the breakout which was followed by a period of nearly 2 months consolidating, after which it has moved ahead more strongly from mid-March. This is now a very robust picture, with the price advancing smartly on good volume, and On-balance Volume rising strongly.
The long-term chart shows exactly where we are in the lifecycle of this stock. On this chart we can see that Silvercrest has completed an exceptionally fine example of a Pan & Handle base and that a “breakout drive” out of the entire base area is just getting underway. As we have observed it has already broken out of the downsloping Handle of this pattern, but it has yet to break out of the entire base area, an event which will be signalled by it breaking clear above the resistance in the area of the early 2004 high approaching C$2. Once it breaks clear above C$2 the rate of rise can be expected to accelerate significantly, and here it should be noted that the resistance arising from trading at higher levels before mid-2000 is not expected to prove to be much of an impediment, as it is so old.
Silvercrest is rated a strong buy at this point in anticipation of a major uptrend that should follow the expected break above C$2.
The following two example charts showing what happened following breakouts from Pan & Handle bases should make abundantly clear the bullish potential of this formation.
We bought ECU Silver long before it broke out, and made large gains…
But we missed a similar pattern in Tanzanian Royalty (formerly Tan Range)…
Silvercrest website
Silvercrest Mines Inc, SVL on TSXV, closed at C$1.45 on 28th April 06
Clive Maund, Diploma Technical Analysis
Kaufbeuren, Germany, 3 May 2006
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Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.
Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.
The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.
Visit Clive at his website: CliveMaund.com
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