Three Sixty Solar (VSOL:NEO;VSOLF:OTC) is an interesting company that makes vertical solar structures that make much more efficient use of the land area in solar power generation. Both fundamentally and technically, the stock is looking most attractive here.
We will start by looking at the 3-month chart so that we can examine the base pattern that has formed since late February in detail, which now appears to be complete. This base pattern is clearly a Head-and-Shoulders bottom that has been accompanied by an exceptionally bullish volume pattern.
The ascent to form the right side of the Head of the pattern was on very heavy record volume, and we have seen persistent heavy volume again as it has risen over the past couple of weeks to complete the Right Shoulder of the pattern with an unusual chain of bullish "belt hold" candles forming over the past week or so — small wonder then that the Accumulation line, shown at the top of the chart, has been soaring.
In recent days the price has been consolidating just beneath the breakout point at the upper boundary of the pattern, waiting for the falling 50-day moving average to drop down to meet it, and now that it has, a breakout appears to be imminent. Breakout should lead to a rapid ascent initially to the January high near CA$1.30 where there is, of course, some resistance.
The longer-term 9-month chart enables us to see the entire history of the stock from inception, and on this chart, we see that the broad overall trend has been neutral to slightly higher.
The massive upside volume of the past month, doubtless due in large part to the marketing campaign, portends a breakout above nearby resistance, leading to a strong advance, and why shouldn't it, given that the company has "got the goods" in the form of its unique vertical space saving solar structures?
The capacity of the stock to make sizeable gains from here should be assisted by the fact that there are still only about 25 million shares in issue.
For the benefit of U.S. subscribers, it's worth us taking a quick look at the chart for the OTC traded stock, where the main point to note is that it is now very liquid with good trading volumes.
On this chart, we can also see the favorable alignment of moving averages with the rising 200-day coming into play to support the price. Although the On-balance Volume line looks rather uninspiring, the Accumulation line on the Canadian charts looks very strong, as we have already noted, and this is considered to be more important.
The conclusion must be that Three Sixty Solar is an immediate strong speculative Buy here for all timeframes. Anyone taking profits in Arizona Silver Exploration Inc. (AZS:TSX; AZASF:OTC) this morning, as per yesterday's update, might consider this as a worthwhile destination for all or part of the freed funds.
Three Sixty Solar's website.
Three Sixty Solar Ltd. closed for trading at CA$0.97, $0.642 on April 14, 2023.
Originally published on clivemaund.com on April 17, 2023, at 8:40 am EDT.
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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.
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