USAS organically transformed themselves into a base metal company when silver resources diminished, then with the purchase of Pershing Gold, bumped the importance of PM's to their portfolio mix and diversified from Mexico centric to include Nevada. I agree the chart looks positive, but given the product mix and potential for a global slowdown, I wonder if USAS will be a top performer. I like the management decision to go where the opportunity was with their property in Mexico and I like the decision to acquire a gold property to keep the PM focus, just not convinced they are going to be the sharpest tool in the shed albeit share price should appreciate.
Price action has been great, Breaking a 5 year downtrend line is a big deal. The key point to note is the volume on US exchange the last two days. Almost 2.5 million shares changed hands. A year ago there were days with only 20k traded in a day.Something is up.
I know very little about chart analysis but don't see how they can have much value outside the context of the sector and individual company fundamentals. In this case USAS has provided forward guidance of 250% Gold production growth, diversified mine outside Mexico with production coming on soon, large share investment by one of the most astute PM gurus followed by another larger profit sharing investment to develop Galena by same deep pocket, with a backdrop of PM's poised to climb a bull mountain.. So in that context what would this chart possibly be saying?