Clive Maund delves into Perpetua Resources Corp., identifying it as a momentum play that seems poised for further gains in the short to medium-term period, supported by strong upside momentum. The recent surge in the stock's price is attributed to the company receiving indications of substantial financing from the export-import bank of the United States for its Stibnite Gold Project, which stands out due to its production of antimony essential for munitions, a material not currently produced in the U.S.
The technical analysis conducted by Maund reveals a bullish scenario for Perpetua Resources, indicating a potential 50% gain with a target price around the US$9 level. Observations from the 6-month chart suggest a formation of a bull Pennant, hinting at a continuation of the positive trend. The long-term 16-year chart paints a picture of a possible significant breakout if the resistance at the US$9 - US$10 area is surpassed, potentially driving the stock to historical highs of US$37.50 or above.
Maund's assessment recommends Perpetua Resources as a Buy for various timeframes, appealing to speculators eyeing quick gains. Additionally, a strategic stop-loss placement is proposed under the lower boundary of the Pennant to mitigate risks. The unlikely event of a breakdown from the Pennant is entertained, especially in the scenario where the expected funding from EXIM does not materialize as anticipated. However, the probability of such an outcome is deemed low, given the current circumstances surrounding the company.
It is essential to note that Maund's analysis, recommendations, and opinions are solely his own and are not to be regarded as investment advice. Each individual reader is encouraged to conduct thorough research and seek advice from financial advisors regarding investment decisions.