Source: Clive Maund for Streetwise Reports 11/26/2018
Technical analyst Clive Maund explains why he believes this company that has copper-gold-silver exploration projects in British Columbia is a “strong speculative buy.”
Doubleview Capital Corp. (DBV:TSX.V, DBLVF:OTC) looks like a solid copper–gold-silver stock that has a lot going for it. As we know, regardless of shorter-term fluctuations, the longer-term future for gold and silver is bright, but the future for copper is too, thanks to the move towards electric vehicles and the strong copper demand that will result from that. The company has a drilling program coming up that is expected to generate interest in the stock, and it is backed by the larger Hudbay Minerals, so it is unlikely to go bust anytime soon.
The charts for Doubleview’s stock look very encouraging. Starting with the 9-year chart, we can see that after peaking briefly at C$0.40 in 2014, it went into a severe bear market that resulted in it losing 90% of its value peak to trough by mid-late 2017. But the large base that now appears to be completing can be seen to have started forming as far back as mid-2015. This rather messy but definite base pattern appears to be a complex Head-and-Shoulders bottom, which we will now look at in more detail on the 3-year chart.
On the 3-year chart we can see that the H&S bottom has been accompanied by a bullish volume pattern and strongly positive volume indicators during its latter stages, so much so that the Accum-Distribution line has already made new highs in recent weeks, which certainly bodes well. Although this base pattern is, as mentioned above, rather complex and messy, with what looks like a doubled Left Shoulder and a Right Shoulder that is almost lost within the steady uptrend that has developed from the low point of the Head of the pattern, it is definitely strongly bullish with a gradual shift of trend from down to up accompanied by volume indicators that are now rising in a vigorous manner, and moving averages in bullish alignment as the stock outperforms the sector. It is therefore logical to conclude that it will soon take on and surmount the important resistance level shown, that loosely marks the upper boundary of the H&S bottom, and once it breaks above this, it should accelerate to the upside, despite there being some resistance to be worked through at somewhat higher levels.
On the 6-month chart we can see recent action in more detail, in particular the marked preponderance of upside volume in recent months, which is an indication of quite aggressive accumulation, hence the strongly rising volume indicators. We can also see on this chart that we have a pretty good entry point here, as after a sharp rise at the end of August, the price has reacted back gently over the past two months towards the lower boundary of the uptrend channel, and it is still quite close to it, despite it picking up a bit over the past two weeks.
In conclusion, Doubleview Capital looks like a strong speculative buy here for all time frames, and even though classed as speculative because it is a smaller stock, it is not viewed as very risky. However, it may be best to step aside for a while if it should break below support at $0.09, which is considered unlikely, with a view to probably buying it back later. It also trades on the US OTC market, but in hopelessly light volumes, where for this reason it should be avoided. There are a reasonable 64 million shares in issue.
Doubleview Capital website
Doubleview Capital Corp, DBV.V, DBLVF on OTC, closed at C$0.105, $0.08 on 16th November 2018.
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Charts provided by the author.
CliveMaund.com Disclosure:
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: DBV:TSX.V,
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