PPTA - Expert Says Gold Stocks Strong Upside Momentum Will Continue | Benzinga
Source: Clive Maund 05/02/2024
Technical Analyst Clive Maund takes a look at Perpetua Resources Corp. to explain why he believes the stock is a Buy.
Perpetua Resources Corp. (NASDAQ: PPTA) is a momentum play, and the reason why we are looking at it now is that it looks like the current strong upside momentum will continue for a while yet and if so, it will result in substantial gains over the short to medium-term and these gains will likely occur over the short-term for reasons that quickly become apparent when we look at its 6-month chart.
The story with this stock and the reason for its recent strong gains is that Perpetua Resources has received indication for up to US$1.8 billion financing from the export-import bank of the United States for Stibnite Gold Project, and a big reason for this appears to be that the mine, once constructed, will also produce large quantities of antimony that is used in munitions which currently is not produced at all in the U.S.
This funding is subject to certain conditions being met, but by the look of it, they will be. On the 6-month chart, we can see that upon this news being released, the price shot up on the 8th of this month, but after further gains, the next day resulted in it becoming extremely overbought short-term, it settled down to mark out what looks like a bull Pennant that once completed calls for a move of similar magnitude to the one leading into it. The way volume has died back steadily as this Pennant has formed indicates that it is genuine and not ...