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Historical Charts
Not a day goes by that some penny mining stock isn't talked about somewhere. And everyday one of those penny stocks shoots through the roof giving investors and speculators 100's of percent return. Through charting and T/A we can sometimes figure out closely to what a stock is going to do. Although no 2 stocks are alike, they do trade much the same given the time and investor attitute. If the market is healthy, even off to poor results can make a stock go up. If the feelings about the market in general are sour, even the best of the best will bring nothing but a yawn and a sell off.
We gather recent charts and go over them looking for similarities and maybe even clues. We've compiled a few here for examples to show you the potential in these small unheard of penny stocks. Our goal is to find the one worth buying. By looking into the recent past we hope to see a bit of the near future.
Here is a 1 year chart of (TSX: CYU). Columbia Yukon Explorations.
This chart is an average example of a stocks that just trades in that thin, illiquid matter for months at a time. You will notice that at the end of Feb. to the beginning of March the volume started to increase. Also the price nudged up slightly. Getting a position in this stock at the .75 cent mark would have been ideal. There was then enough trading volume to carry the stock. Interest was growing. At $1.75-$2.00 the stock became overbought. That to us would have been a good time to sell out. Profits on the position would have 100% in about 6 weeks time.
This second chart here is of (TSXV: CBI) Colibri Resources. They are a small explorer of gold and silver in Mexico. Notice the low of .10 cents. Hardly any trades. Very low volume. In Dec. the price slowly climbs and the volume is slighly up. Ideally Jan. would have been an opportune time to take a position. This is one of those classic screamers that explode to the upside with very little notice. But as you can see, even buying at .20 cents the stock itself gained over 400% in a 2 month time span.
This 3rd chart is of (TSX: SRU) Starfield Resources. They are a small explorer in Northern Canada looking for nickle, tungsten, moly, etc. Once again notice the trading patten. Between .20-.40 cents for months. Although there is a small indication of something happening end of April it would appear that nothing new was about to happen. Then as you see in May the stock goes balistic. A 200% gain overnight. At first caution would be key as to where this stock is going. But a good entry point would be the $1.20 range. Potential profits would not be as high as if you had bought or were holding from lower prices.
This 4th chart is of (TSX: GCR) Golden Chalic Resources. Here again we have a small explorer that stumbles on a good find and the drill and assay results show it. This stock gave no warning whatsoever that news was around the corner and to what kind of news it would be. This is one of those 1000% increase stocks you read about from time to time. A stock like this should be monitored closely to the volume and price action. Even in around the 2 dollar range, if additional results pan out, there is room for this stock to the upside.
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