This Looks Like a Good Place To Buy Following Major Funding
Source: Clive Maund 06/12/2023
Technical Analyst Clive Maund takes a look at Defense Metals Corp.’s year-to-date and 3-year charts to tell you why he believes it is now time to buy.
Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) produces Rare Earths in the Americas, so you would think its stock would be doing well, but a glance at its year-to-date chart below shows that it has been in quite a severe decline from its February peak. While a part of the reason for this is simply it reacting back in a normal manner following a strong runup early in the year, the latter part of it is doubtless largely due to heavy funding involving a huge 48 million share private placement.
The price of the stock in this placement was CA$0.26, so the price has overshot to the downside since it is now at about CA$0.22. This, therefore, looks like a very good point to pick up the stock since the depression caused by large funding of this nature is temporary, and the funding was closed late last month and clearly, after funding of this magnitude, investors need not fear another one for a long time.
On the chart, we also see that it is currently oversold, at the bottom of our provisional channel, and some way below a still rising 200-day moving average, all of which points to at least a relief rally shortly.
It’s also worth us taking a quick look at the longer-term 3-year chart on which we see that the overall trend in Defense Metals has been neutral for nearly two years, and we can also see that the downtrend of recent months has brought it back down into a broad zone of strong support at cyclical lows, which is normally a good place to buy.
Finally, with the world now tipping in the direction of a major war, it is a gross understatement to say that demand for the company’s product looks set to be robust and continue to get stronger. So its stock should be a good investment.
Defense Metals’ website.
Defense Metals Corp. closed at CA$0.215, $0.16 at 1.22 pm EDT on 8 June 8, 2023.
Originally published on clivemaund.com on June 8, 2023, at 1:30 pm EDT.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Important Disclosures:
- Defense Metals Corp. is a billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp.
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
- This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
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.
( Companies Mentioned: DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE, )
Source: https://www.streetwisereports.com/article/2023/06/12/this-looks-like-a-good-place-to-buy-following-major-funding.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.