Although Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK) stock hasn't done much since we looked at it late last year and in fact it is barely changed, the technical case for owning its stock and the fundamental case for owning its stock remains the same, but the difference now, as we will see in this update, is that it looks like it is about to get moving at last, which of course is partly due to improving conditions across the sector.
Since what was set out in those earlier reports remains valid, there is no need for us to go over this material again in this update. Here we are going to focus on how the stock is shaping up technically.
First of all let's remind ourselves how cheap this stock is historically by means of its 11-year chart. On it we can see that it got to over 50 cents at the start of 2011 but since then it has been downhill all the way. However, the latest downtrend from mid-2016, that has taken it marginally to new lows, has been going on for a long time now, making it likely that it is close to a cyclical low here, especially as the fundamentals are favorable and the entire sector is firming up for a major new bull market. Note that a 20-year chart may be viewed in the 31st October article on Terraco.
While it is not of much use technically, the 6-month chart shows recent action in detail, and in particular a marked buildup in upside volume over the past five weeks that has driven the Accumulation line sharply higher, and to another new high on its 11-year chart. This of course is bullish, and even after the rise of the past few days, Terraco is still cheap here, as the 11-year chart forcefully reminds us.
The conclusion is that Terraco is a strong speculative buy here, and since it has barely moved yet, there is considered to be relatively little downside risk.
Terraco Gold website.
Terraco Gold Corp. TEN.V, TCEGF on OTC, closed at C$0.08, $0.062 on 21st March 19.
Originally posted on CliveMaund.com at 9.50am EDT on 22nd March 2019.
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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Charts provided by the author.
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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. 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.
