Investors Who Want Precious Metals Exposure Should Consider This Name
A precious metals mining company is showing a strong advance in the past year and there's reason for investors to go long.
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Compania De Minas Buenaventura SA BVN is a precious metals mining company. According to its website, it carries out the mining, processing, development and exploration of gold, silver, coal, lead, molybdenum, zinc and copper through its wholly-owned mines and joint exploration projects.
On July 2, 2024, I recommended Agnico Eagle AEM and it has just made a new 52-week high. Not bad. Shares of BVN caught my eye on Thursday, so let's check the charts.
In this daily bar chart of BVN below, I can see a strong advance in the past 12 months. Prices soared in December 2023 and trading volume surged. Prices are trading around the 50-day moving average line and the slope of the 200-day line is positive. The On-Balance-Volume (OBV) line shows gains into March followed by a slow decline. The Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero line.
In this weekly Japanese candlestick chart of BVN below, we look at the last three years. Prices made a base in the $6 area and then broke out on the upside in late 2023. Prices trade above the rising 40-week moving average line. The weekly OBV line has been bullish for the last two years. The MACD oscillator is above the zero line but correcting.
In this longer-term weekly Japanese candlestick chart of BVN below, I can see the price history going back to 1996. Prices have made a large base pattern going back to 2013. Large bases typically generate large advances.
In this daily Point and Figure chart of BVN below, I can see a price target in the $39 area.
In this weekly Point and Figure chart of BVN below, I used a five-box reversal filter. Here, the software suggests a price target in the $70 area.
Bottom line strategy: Traders looking to get exposure to precious metals could go long BVN at current levels risking to $14. The $39 area is my first price objective.
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