Four Resource Stocks to Buy Now When the Stock Market Is Down

Contributed Opinion
Source: Clive Maund for Streetwise Reports

Technical analyst Clive Maund outlines four resource stocks that he believes are at a great entry point right now.

Special Report
Here is a heads up on some strong mining stocks that I will be writing up in more detail as soon as possible. These stocks are at great entry points, which may be improved by the continuing plunge in the broad stock market. In any case these stocks appear to be impervious to declines in the broad market.
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Enviroleach Technologies Inc. (ETI:CSE; EVLLF:OTC) C$1.90, $1.46, and Mineworx Technologies Ltd. (MWX:TSX.V; MWXRF:OTCQB) C$0.27, $0.25, that we looked at again a few weeks back are still at great entry points, and appear to be impervious to the woes now afflicting the broad stock market. Both are believed to be at the tail end of corrections within strong bull markets and the news is that Enviroleach is one of the shortlist of four for the industry #DisruptMining Innovation Expo prize with the winner due to be announced this Sunday. If it wins both stocks will likely gap up on Monday; if it doesn’t it’s not a problem, because the fortunes of these companies do not depend on winning a prize.
Lion One Metals Limited (LIO:TSX.V; LOMLF:OTC) C$0.55, $0.448, is still at a great entry point here after it announced a couple of days ago that a surface sample from the Jomaki prospect returned 502 gram/ton gold over 0.70 meters, which is very rich mineralization. The stock broke sharply higher on this news but gave back 5% yesterday, and is still very near to base support thanks to the sector being battered again in recent days. PM sector newsletter writer Brien Lundin really likes Lion One here. The long-term chart shows that Lion One is at an excellent entry point after a long corrective downtrend back to the support at the upper boundary of a large Head-and-Shoulders top. IMMEDIATE STRONG BUY.
Silver Bull Resources Inc. (SVB:TSX; SVBL:NYSE.MKT), C$0.185, $0.15, is now at an excellent entry point. Coeur Mines finished selling its holdings in the stock a while back and the stock has been kept in check by some selling of warrants. However, the company announced a significant discovery last month, and management is about to change out of their scruffy old jeans and T-shirts, put on sharp suits and head for PDAC where the big miners will be present with their checkbooks looking for better juniors to invest in or buy, like this one. Technically Silver Bull is at a great entry point as it is in a strong overall uptrend and at support, and you may recall that we have been buying it on dips in recent weeks.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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