A Low-Priced Precious Metals Play to Consider

Look for the rally in precious metals stocks to spread out from the top-shelf leaders to more speculative names.

We covered a number of precious metals names back in February (see here, here and here), but now we want to take a look at a low-priced name that is showing some upside potential -- Avino Silver & Gold Mines Ltd. (ASM) .

In the daily bar chart of ASM, below, we can see that the shares have been trading sideways in a relatively tight range around $1.25. Prices are just slightly above the 50-day and 200-day moving average lines.

The On-Balance-Volume (OBV) line is steady with a jump to the upside at the beginning of February. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but needs to turn to the upside for a fresh buy signal. 

 

 

In the weekly bar chart of ASM, below, we can see a base pattern around $0.50 before prices turned up above the 40-week moving average line.

 

The weekly OBV line is positive and the MACD oscillator is narrowing toward a new buy signal. 

 

 

In this Point and Figure chart of ASM, below, we used close-only price data with a percent move scaling and a five-box reversal filter. No upside price target is projected but a trade at $1.42 should be an important technical development.  

 

 

 

Bottom-line strategy: I do not make a habit of following low-priced names but I get a sense the rally in the precious metals names is about to spread out from the top-shelf leaders to more speculative names. Do your research on ASM before purchasing.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider ASM to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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