The copper price dropped substantially between mid-April and mid-July, with the decline being especially severe from early June through mid-July when it hit bottom.
Price / volume action in recent weeks suggests that it has been basing with good upside volume that has driven the Accumulation line higher.
On its latest six-month chart it looks like a small Head-and-Shoulders bottom has been forming and with the Right Shoulder of the pattern looking complete it should soon break above the resistance at the upper boundary of the pattern which would be expected to lead to a run back up to the broader band of resistance in the $4.05 - $4.20 area.
Such an advance should lead to good gains in most copper stocks, like Infinitum Copper (INFI.TSV.V) that we will now proceed to look at below.
Infinitum Copper’s chart doesn’t require much analysis.
Most of its decline from mid-April was due to the drop in the copper price, which is why we looked at that first, and it may have been partly due to it doing a financing at CA$0.20.
So, clearly the price would want to gravitate to that level.
However, all the news from now on looks good as in addition to copper looking like it is turning up again, the CA$1.3 million financing has now been closed (completed), in addition to which drilling, which began in March, looks likely to yield results soon.
Lastly, at least 50% of the stock is believed to be tightly held.
The conclusion is that Infinitum Copper looks set to break higher and rally soon due to copper doing likewise and for its own reasons and it is therefore rated an Immediate Speculative Buy.
Note that although Infinitum does trade on the US OTC market, it is usually on very light volumes, so it is best to trade it on the Canadian market if possible.
One last but important point—if copper is going to rally then it is highly likely that silver will too.
Checking silver’s chart we see that while copper has been marking out a small Head-and-Shoulders bottom, silver has been marking out a small Cup and Handle base, with the Handle forming now beneath its 50-day moving average.
Silver is therefore expected to break higher too.
Infinitum Copper website
Infinitum Copper closed at CA$0.19, $0.14 on August 5, 2022.
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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.
Disclosures
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Infinitum Copper, a company mentioned in this article.
