Osisko Gold Royalties posted record GEO production this quarter. However, the company indicated a substantial non-cash impairment that was surprising. The stock has suffered a massive selloff with the acquisition of the Bakerville Gold mine starting in September 2019.
Then, the weak diamond market at Renard and the sale of the Brucejack offtake were the main issues that pushed the company to revise down the 2019 guidance.
The combination of those factors triggered a "correction." Despite the gold price increase, now reaching a multi-year high, the stock was not able to regain strength and has languished since then in the $8s range.
...
OR experienced a support breakout of its ascending channel pattern at the end of February and dropped to nearly $8.00, which is now line support. The new trend that I see is a descending channel pattern with line support at $8.00 and line resistance at $9.60.
My recommendation is to buy at or below $8.00 and take profit at or above $9.60.
See the whole post on Seeking Alpha: https://seekingalpha.com/article/4330549-osisko-gold-royalties-too-early-to-call____________________________________________________
MasterMetals
@MasterMetals
No comments:
Post a Comment
Commented on MasterMetals