Benzinga - by The Critical Metals Report, Benzinga Contributor.
Source: Clive Maund 06/11/2024
Technical Analyst Clive Maund shares his thoughts on Tisdale Clean Energy Corp. to explain why he believes it is a Strong Buy.
Tisdale Clean Energy Corp. (OTC: TCEFF) is looking for uranium in the prolific Athabasca Basin in Saskatchewen.
This is a place that hosts a range of significant deposits with the company's South Falcon East flagship property located.
This is shown on the following slide from the company's latest investor deck at the southeast of the basin.
The next slide shows that there are big uranium companies active in the area, such as Cameco Corp. (NYSE: CCJ), Denison Mines Corp. (AMEX:DNN), and NexGen Energy Ltd. (NYSE: NXE), and they would not be there without good reason, so the chances of making a significant discovery are high.
This next slide shows the company's South Falcon East property in more detail, and on it, we can see the proximity of big players like Cameco and Rio Tinto Plc (OTC: RTNTF).
Note that drilling and exploration will be ongoing as the year unfolds. To learn more about the geology of the property, visit the company's latest investor deck.
Turning now to the latest stock charts we see that although Tisdale Clean Energy has put in a disappointing performance since we looked at it in January, at this point it continues to show signs that it is set to reverse to the upside soon.
On its latest 2-year plus chart, we can see that the downtrend in the stock from the Spring of last year shows marked convergence, which means that it is a bullish Falling Wedge. The reason that such a pattern is bullish is that it shows a diminution of downside momentum such as frequently precedes a reversal to the upside, and in this case, such a reversal is made a lot more likely by the continuing resilience of the Accumulation line which has held up remarkably well as the price has dropped, even if this is little consolation to holders of the stock, and it is even close to making new highs.
These two important factors taken together make it highly likely that the stock will soon take a turn for the better, so we will now look for evidence that it may be about to reverse on the 1-year chart.
On the 1-year chart, we can see that a potential small Double Bottom may be forming with the late April lows, especially given the positive factors that we have already discussed, and that is considered to be a fair chance that it will break higher soon off the support at these lows.
However, given that this is a small pattern and that moving averages are still in unfavorable alignment, one possibility that we should be aware of is a false break to the downside, a so-called "head fake" followed by a rapid reversal to the upside leading to continued advance.
Tisdale Clean Energy is therefore rated a Strong Buy here for all time horizons.
Tisdale Clean Energy Corp. closed for trading at CA$0.095, US$0.062 on June 10, 2024
Important 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. 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 cannot be construed as a recommendation or solicitation to buy and sell securities.
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