We bought Kainantu Resources Ltd. (KRL:TSX) at two good entry points shown on its latest six-month chart below, and the purpose of this update is to bring to your attention that yesterday it broke out of the bull pennant that we had earlier identified on strong volume.
This should mark the start of the next upleg in the stock that is likely to be more substantial than the one at the start of the year, which served more than anything to “get the ball rolling.”
The pennant went on for a little longer than expected at about five weeks, but the outlook didn’t change and remains resolutely bullish.
No action is required on our part — we stay long and Kainantu is a buy on minor dips, if any.
Kainantu Resources website
Kainantu Resources Ltd, KRL.TSX, closed at C$0.21 on 15th Feb. 22.
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.
CliveMaund.com 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.
