The Canadian resource sector has been mired in a cyclical bear market for the better part of the last two years. However, it is during times likes these that it is worth digging through the charts in search of stocks that have held up well during the downturn and may be ready to lead markets higher during the next bull run.
As many of you who follow the juniors closely already know, the juniors often times offer much purer technical signals than their big brothers. Perhaps this is due to the fact that there are fewer hedge funds involved in the space due to size limitations or there is no high frequency trading (HFT) in these names. Whatever the reasons, technicians are able to often glean some very clear signals from the charts of the juniors.
I have selected six charts that I found to be of the most interest and which I believe are worth keeping on your radar over the coming months – a couple of these charts are in strong uptrends while there are others showing signs of nearing the end of long-term downtrends. These selections are purely based on the charts with the top selections offering the most attractive risk/reward setups:
#6. Carpathian Gold (CPN.TO)
#5. Encanto Potash Corp. (EPO.TO)
#4. Prodigy Gold (PDG.V)
#3. Lumina Copper Corp. (LCC.V)
#2. Petroamerica Oil Corp. (PTA.V)
#1. Copper Fox Metals (CUU.V)
Disclaimer: Do your own due diligence. This is not investment advice.