By The Life Science Report
Technical analyst Clive Maund charts how news from this company affects its investment thesis.
The reason for this brief update is that this is a good juncture to bring to your attention that the technical condition of Captiva Verde’s stock continues to improve, to the point that it now looks about ready to break out to new highs. If it does, it should go on to make substantial gains after its long period of consolidation from last March.
On its latest 14-month chart we can see that it is now nudging its way out of a bull flag on good volume, and is now in position to take on the resistance at the highs at CA$0.30 per share. Factors strongly supportive of a probable breakout are the bullish alignment of moving averages, with the rising 50-day set to quickly cross the rising 200-day in the event of breakout, and the positive volume pattern, with predominant upside volume in the recent past, which has driven the accumulation line steadily higher. The pattern that has formed since June is classified as a shallow head-and-shoulders bottom. This is, thus, a very positive picture indeed.
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With respect to the fundamentals, in addition to what was set out in the last update on the 11th, there has since been news out about a week ago that Captiva Verde is to acquire Miss Envy, a development that has its competitors turning green. This looks like a sound growth strategy, and here it is worth recalling that the CEO of Captiva Verde, Jeff Ciachurski, grew Western Wind from a tiny outfit to a very valuable company when it was eventually sold/bought out. It seems likely he will do the same with Captiva Verde, especially as the regulatory environment in Mexico is moving very swiftly in the company’s favor.
Finally, the fundamental and technical outlook for this stock is so favorable that it is considered worth dumping some losers and stagnant stocks in your portfolio and regrouping into stocks like this. The stock trades in light, but improving and now acceptable, volumes on the US OTC market, where, as ever, limit orders should be employed. It is certainly worth noting that there has been a big build-up in upside volume in recent weeks on this market, which has driven the on-balance volume line sharply.
Captiva Verde Land Corp.; PWR:CSX, CPIVF:OTC; closed at CA$0.245, $0.18 on 20 November 2019.
Originally posted on CliveMaund.com at 8.35 am EST on 21 November 2019.
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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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: PWR:CSE,