Archive for Financial News – Page 4

The Analytical Overview of the Main Currency Pairs on 2021.06.16

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2119
  • Prev Close: 1.2125
  • % chg. over the last day: +0.05%

The EUR/USD currency pair continues to trade in a narrow flat. Now the price is slowly moving up to the moving average line. So, most likely, there will be no significant volatility before the Fed meeting. Analysts are confident that euro quotes will rise after the meeting, as there are no fundamental reasons for the price to fall.

Trading recommendations
  • Support levels: 1.2114, 1.2085, 1.2026, 1.2002, 1.1957
  • Resistance levels: 1.2143, 1.2174, 1.2212, 1.2243, 1.2311

The sellers’ pressure remains high, while the buyers are very weak. The MACD indicator is inactive. The best strategy for traders is to look for sell trades from resistance levels. But considering the deviation from the middle line, it is also possible to look for buy trades from the support levels. Though, it is better to buy on intraday timeframes.

Alternative scenario: if the price breaks out through the 1.2212 resistance level and fixes above, the general uptrend is likely to resume.

EUR/USD
News feed for 2021.06.16:
  • – US Building Permits (m/m) at 15:30 (GMT+3);
  • – US FOMC Meeting Minutes Release at 21:00 (GMT+3);
  • – US FOMC Statement at 21:00 (GMT+3);
  • – US Fed Interest Rate Decision at 21:00 (GMT+3);
  • – US FOMC Press Conference at 21:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.4108
  • Prev Close: 1.4083
  • % chg. over the last day: -0.18%

Yesterday, the GBP/USD currency pair unexpectedly fell below the priority change level of 1.4075 but failed to consolidate there. By the end of the trading session, the buyers quickly brought the price back above the level. The trigger for the sell-off was the postponement of the opening of the economy to the next month. The situation on GBP/USD becomes contradictory, as the fundamental picture for the British currency in the medium term is positive.

Trading recommendations
  • Support levels: 1.4075, 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
  • Resistance levels: 1.4110, 1.4191, 1.4212, 1.4338

The GBP/USD currency pair trend remains bullish, as the price is above the priority change level. But traders should pay attention to the sellers’ pressure. At the moment, the price is trading below the moving average. The MACD indicator is signaling a divergence. The price is right at the support level, so under such market conditions, traders are better to look for buy trades. Sell positions can also be considered, but from resistance levels and with short targets.

Alternative scenario: if the price breaks down through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.

GBP/USD
News feed for 2021.06.16:
  • – UK Consumer Price Index (m/m, y/y) at 09:00 (GMT+3);
  • – US FOMC Meeting Minutes Release at 21:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.05
  • Prev Close: 110.04
  • % chg. over the last day: -0.01%

The USD/JPY currency pair formed a narrow flat right at the resistance level. As a rule, such behavior of the price occurs before the breakout. But considering that the Japanese currency is highly correlated with the dollar index, the outcome will depend on the Fed meeting.

Trading recommendations
  • Support levels: 109.83, 109.63, 109.35, 109.18, 108.66, 108.44, 108.19, 107.77
  • Resistance levels: 110.09 110.51, 110.73

Technically, the mid-term trend is bullish as the price is above the priority change level of 109.18. Now the price has reached the resistance level, and the MACD indicator is signaling a weak divergence. Considering the strong deviation from the moving average, there is a high probability of a small corrective move down. Traders can look for both buy trades from the nearest support levels after the correction as well as sell trades from resistance levels on intraday timeframes.

Alternative scenario: if the price falls below 109.18, the general downtrend is likely to resume.

USD/JPY
News feed for 2021.06.16:
  • – US FOMC Meeting Minutes Release at 21:00 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2138
  • Prev Close: 1.2185
  • % chg. over the last day: +0.39%

The USD/CAD currency pair continues to rise. The quotes of the Canadian dollar are highly correlated with the American dollar index now, so a lot will depend on what Jerome Powell will say today at the FOMC press conference.

Trading recommendations
  • Support levels: 1.2148, 1.2119, 1,2096 1.2060, 1.2032, 1.1944
  • Resistance levels: 1.2197, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519

Technically, the trend remains bullish. The price is trading above the moving average, but the MACD indicator signals a weak divergence. Under such market conditions, traders can look for buy trades from support levels after a small downward correction is completed.

Alternative scenario: if the price breaks down through the 1.2060 support level and fixes below, the downtrend is likely to be resumed.

USD/CAD
News feed for 2021.06.16:
  • – Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
  • – Canada Core CPI (m/m) at 15:30 (GMT+3);
  • – US FOMC Meeting Minutes Release at 21:00 (GMT+3).

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

When History Repeats Itself – Bullish Triangle Pattern In Silver Price Reminiscent Of Beginning Of Heart-Stopping 2009 Bull Run To $50

By TheTechnicalTraders

Chris Vermeulen, the founder and chief market strategist of TheTechnicalTraders.com, talks with Patrick Vierra on Metal Money to discuss how the bullish triangle pattern in silver now mirrors 2009 before the breakout to the 2011 silver price peak.

CLICK ON THE IMAGE BELOW TO WATCH THE INTERVIEW

GET YOUR DAILY DOSE OF CHRIS’S SILVER AND GOLD ANALYSIS ALONG WITH THE HOTTEST ETFS TO TRADE WITH BAN TRADER PRO!

TheTechnicalTraders.com

Volatility in financial markets declined as investors await the Federal Reserve meeting

by JustForex

The US stock market closed with a decrease at the end of the day. The technology sector, as well as the consumer goods sector, became the leaders of the decline. Note that these sectors were the leaders 2 days ago. It proves that distribution of funds between sectors is carried out in a planned way, when some sectors are growing and others are falling down, and after a few days the picture is the opposite. And more than half of the deals are carried out by trading algorithms. Today, all the attention of investors is focused on the FOMC meeting and Jerome Powell’s press conference. Watch out for the volatility to rise sharply. Analysts expect officials to point out a discussion on the reduction in stimulation measures, but the cuts themselves will not be implemented yet, as the number of jobs is significantly lower than the pre-pandemic level. Therefore, it is more likely that soft monetary policy will remain until August.

European stock indices closed with a rise on Tuesday. Germany’s DAX and Britain’s FTSE increased by 0.36%. The vaccination rate in Europe continues to rise. Europe is expected to reach the marker of 70% of vaccinated adults in July. This state of affairs will undoubtedly have a positive effect on the growth of the eurozone economy. The UK has not yet lifted strong restrictions, the opening of the economy has been postponed until next month. The consumer price index showed that inflation in Foggy Albion increased to 2.1%. Experts believe a figure of 2.5% by the end of this year.

The price of oil is unstoppable. Yesterday, the price of the “black gold” hit its 2-year high again. Today, traders are expecting a report on crude oil inventories, which usually has a significant impact on oil price behavior. Inventory shortages could push the price even higher.

Gold futures remained at the same level. It is very important to monitor the dollar index and Treasury yields now, as gold has an inverse correlation to these instruments. If the monetary policy will be maintained till August, gold is very likely to continue its upward trend. On the other hand, copper prices are declining and are close to good medium-term buying points.

Japan’s Nikkei index decreased by 0.2% and China’s main index, the CSI 300, lost 0.3%. Volatility in Asian indices has declined as investors are wary of any signs of aggressiveness from the US Federal Reserve. There are also slight concerns about the slowdown in China’s economy, this data will be released today. There is another coronavirus outbreak in Australia.

Main market quotes:

S&P 500 (F) 4,246.59 -8.56 (-0.20%)

Dow Jones 34,299.33 -94.42 (-0.27%)

DAX 15,729.52 +55.88 (+0.36%)

FTSE 100 7,172.48 +25.80 (+0.36%)

USD Index 90.52 -0.00 (-0.01%)

Important events:
  • – UK Consumer Price Index (m/m, y/y) at 09:00 (GMT+3);
  • – China Industrial Production (m/m, y/y) at 10:00 (GMT+3);
  • – China Retail Sales (m/m) at 10:00 (GMT+3);
  • – Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
  • – Canada Core CPI (m/m) at 15:30 (GMT+3);
  • – US Building Permits (m/m) at 15:30 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
  • – US FOMC Meeting Minutes Release at 21:00 (GMT+3);
  • – US FOMC Statement at 21:00 (GMT+3);
  • – US Fed Interest Rate Decision at 21:00 (GMT+3);
  • – US FOMC Press Conference at 21:30 (GMT+3).

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Intraday Market Analysis – GBP Needs Rebound Catalyst

By Orbex

GBPUSD bounces off key support

GBPUSD

The pound consolidates as the unemployment rate falls to 4.7% in the three months to April.

The pair has found support at the lower range of its horizontal consolidation (1.4040). This demand zone from the daily chart is critical in keeping the bullish trend intact.

An oversold RSI at this level may have prompted the bulls to buy the dip. 1.4125 from the latest sell-off is the immediate resistance. Its clearance could pave the way to the peak at 1.4250.

On the downside, a breakout could trigger a sell-off towards 1.3900.

NAS 100 retreats towards support

NAS

The Nasdaq 100 pulls back ahead of the Federal Reserve’s June monetary policy meeting.

The breakout above the previous high at 14070 is a confirmation of bullish continuation. The bullish MA cross on the daily chart suggests an acceleration in the rally.

Short-term retracement could meet buying interest from trend followers. 14170 is the immediate resistance and the psychological level of 14000 is the closest support.

Further down, 13800 on the 20-day moving average would be a test for the bulls’ commitment.

XAGUSD consolidates ahead of breakout

XAGUSD

Silver holds on to recent gains as the US dollar softens on lackluster retail numbers.

Sentiment has recovered after the price rallied above the daily resistance at 28.30. The precious metal is grinding along the 30-day moving average in search of bids.

27.00 is a major support while the sideways action goes on. A bearish breakout could extend the correction towards 26.10.

On the upside, a close above 28.00 may lead the price to challenge the upper band of the range at 28.70 for the third time.

By Orbex

The wait is nearly over…

By Lukman Otunuga Research Analyst, ForexTime

Markets have been in “wait-and-see” mode this week, ahead of a “wait-and-see” Fed perhaps. The “transitory inflation” story is now fully priced in (after a few moments of disbelief) by markets which means the Fed may struggle to be any more dovish at their meeting this evening. Is it now time to acknowledge that some of the emergency bond buying programmes for the pandemic depression are not needed in a few months? At least some consideration of the timing of the taper seems warranted, as traders obsess over the “t” words.

The dollar has been firm this week, though closing within ranges with two “doji” candles printing so far. Trends have been mixed across G10 pairs with trading generally quiet as traders await the dots and hang on every word and change in language from Jay Powell and the FOMC.

More upside to come in the FTSE100

Stocks are treading water with US futures mixed and European markets opening modestly higher. The FTSE 100, sometimes known as the “global cyclical bellweather” due to the majority of the listed companies generating revenues from overseas, is aiming to push higher as it still lags other major indices in making new all-time highs. A strong close this week will put bulls in the box seat for more upside, with targets above being 7400 which would be close to reclaiming all the losses from the pandemic selloff.

The UK released inflation data earlier this morning with you guessed it, beats across the board! The headline number came in at 2.1% y/y versus analyst estimates of 1.8% while the core also printed stronger than expected at 2.0% against the 1.5% projection. Hot numbers for sure, with the usual base effects and supply constraints in the price pressure mix. BoE policymakers will be alert to this in the general narrative of rising prices.

Oil marches higher

Brent crude is trading above $74 and at levels last seen back in April 2019. API reported overnight that US crude oil inventories fell by 8.5 million barrels over the last week, far more than the 2.5 million barrels decline the market was expecting. If the EIA reports a similar fall later today, it would be the largest decline wince the start of the year. Optimism over the demand outlook is one factor driving prices north, while both OEPC+ and US shale oil producers are expected to support the supply of oil.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Trade of the Week: Fed to test gold bugs

By Han Tan Market Analyst, ForexTime

The $1900 mark has been pushed further out from gold’s reach ahead of the keenly-awaited, two-day Fed meeting which begins today.

Since breaching the psychologically-important level in May, the precious metal has declined about 2.5% so far this month, posting a lower high and a lower low on the daily charts.

To be fair, after posting the double-bottom on 30 March, spot gold has advanced by more than 10% even after taking into account June’s declines. However, what’s of particular note is the fact that it has since struggled to punch significantly past $1900.

‘Markets Extra’ Podcast: Gold prices and the two “magic” T-words

Why are gold prices struggling to climb higher?

Gold bulls’ June frustrations so far stem from a US dollar that’s refusing to buckle under the weight of a dovish Fed, and the relative resilience of real yields on US Treasuries; both have moved higher coming into this week.

Despite a 3-month low for nominal yields on 10-year Treasuries, which the greenback tracks rather closely, the dollar index (DXY) has been able to keep its head above the psychological 90 level.

Similarly, the real yields on 10-year Treasuries have refused to fall deeper into negative territory, hovering around the minus 0.9 percent mark at the time of writing. Note the inverse relationship between gold prices and real Treasury yields (when real yields rise, gold falls, and vice versa).

It looks like both the DXY and 10-year real yields have to climb a leg lower (think sub-90 DXY and 10-year real yields that are closer to negative one percent) before the precious metal can enjoy another gust of tailwinds.

 

The crucial immediate question is, will the Fed produce those bullish cues for gold this week?

First things first, the Fed is widely expected to leave its policy settings untouched at the June meeting. That means interest rates remain near-zero, and the Fed presses on with its $120 billion in monthly asset purchases that’s supported financial markets since the pandemic broke out.

Also, the Fed has often repeated its stance that inflationary pressures in play at the moment are expected to be transitory. So instead of looking at inflation overshoots, policymakers want to see a more equitable and “broad-based” recovery in the US labour market before easing up on their support.

It’s highly unlikely that the Fed would want to rock global financial markets. I’m sure policymakers would want to avoid a repeat of the infamous ‘taper tantrum’ from 2013.

The key here is for the Fed to convey its policy intentions clearly, allowing market participants plenty of time to digest the central bank’s messaging.

And what is this message that markets are so eager to hear?

It’s when, or under what economic conditions, would the Fed start to taper its $120 billion in monthly asset purchases.

And those cues could arrive from any of these channels on Wednesday:

  • The language used in the FOMC statement
  • The updated economic projections
  • The words employed by Fed Chair Jerome Powell during his post-meeting press conference
  • The FOMC dot plot (which denotes each FOMC member’s outlook for US interest rates)

Should any of these channels offer cues that the Fed’s tapering is coming sooner than expected, such hawkish tones could see spot gold testing its 200-day simple moving average as a key support level. However, if the Fed coos signals that are more dovish-than-expected, that could spell a return to $1900 for the precious metal while potentially sealing a ‘golden cross’ for spot gold whereby its 50-day simple moving average can cross above its 200-day counterpart.

READ MORE: 6 reasons behind gold’s recent climb

 

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Gold could be set for rally to its all-time high

By Admiral Markets

Since the lows of the pandemic in March 2020, gold surged by nearly 45% over the next few months. After recording an all-time high of around $2,075.00 in August 2020, the gold price declined nearly 20% before basing in March this year.

The price is now up 15% from its March low and has broken a key level of resistance (shown by the descending black line in the chart below).

If the price can stay above this technical level of resistance there is potential for a near 13% run higher back to its all-time high.

Source: Admirals MetaTrader 5, GOLD, Weekly – Data range: from Apr 27, 2014, to Jun 15, 2021, performed on Jun 15, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

 

However, much will depend on the impact of the US Federal Reserve’s interest rate policy. The markets have been expecting the Fed to increase interest rates sooner than they are letting on.

A surge higher in the US dollar could send gold tumbling lower. In this case, traders may look for false breakout patterns to develop under the key resistance level from the weekly chart. As always, the key will be the price action.

Source: Admirals MetaTrader 5, GOLD, Daily – Data range: from Jan 6, 2020, to Jun 15, 2021, performed on Jun 15, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

In the daily price of gold shown above, a retest of the descending black line also coincides with a variety of moving averages, including the 20, 50 and 100-period exponential moving averages.

Technically, this could also lend gold some support but if the price breaks through then it could also be a confirmation of a false breakout and move back down to the lows of this year.

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By Admiral Markets

Avrupa Minerals Closing In on Potential Economic Mineralization at Sesmarias

Source: The Critical Investor for Streetwise Reports   06/12/2021

The Critical Investor takes a look at recent drill results at its copper-zinc project in Portugal, a JV with MATSA.

Avrupa Minerals

It has been a long wait before Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) was able to report new drill results at its Sesmarias 8 Lens target at the flagship copper-zinc Alvalade project in Portugal, operated by Avrupa and MATSA in a JV, but it finally did so on June 9, 2021. As the geology of the 8 Lens is complex, management is drilling several fences (rows of drill holes across perceived mineralized zones) in order to map geologic structures, before stepping out much further. The latest intercepts were decent although not very economic, with, for example, hole SES21-033 with 22.25m @ 0.42% copper from 363m, and SES21-036 with 17m @0.39% copper from 406m, both with significant zinc and lead credits. As the aim of management (and MATSA) is at least 1% copper, the search goes on, and in this update I discuss the latest drill results and other things with President and CEO Paul Kuhn.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in US Dollars, unless stated otherwise.

Avrupa Minerals and MATSA are trying to track down a pretty complex and intensely folded potential mineral deposit, as can be seen here in this conceptual section A-B, drawn after the latest results came in:

As can be seen, folded structures like this can only be described properly by strings of closely spaced drill holes, mapping stratigraphy and mineralization in a detailed fashion. Since mineralization could be located at significant depth in this case, deep drilling is also necessary. Keep in mind the nearby historical Lousal Mine which mined 20Mt and is estimated to contain another 30Mt of ore, has a similar mineralized envelope consisting predominantly out of black shales and massive sulphides, and this is exactly what Avrupa and MATSA are looking for at Sesmarias. For more understanding, here is a slightly enlarged version of the map containing this section:

At this time, 3,580 meters (m) of diamond drilling has been completed, consisting of seven holes on three sections (050N, 000 and 070S). The individual results will be discussed later on in this article. As a reminder, hole SES008 was the discovery hole in this area with 5m @ 0.64% copper (Cu), 36.8 g/t silver (Ag), 0.94% lead (Pb) and 1.54% zinc (Zn). Hole SES20-032 didn’t hit any massive mineralization, and SES028 intercepted something that is believed by management to be the edge of a significant feeder zone beneath the 8 Lens, with anomalous values like 0.18ppm Cu over 13.5m from 447m depth. Hole SES20-031, on a different section, returned 10.75m @ 0.19% copper and 0.74% lead. Management interpreted these results, as follows:

“Drilling in SES028, in 2018-19, intercepted a long interval of stockwork mineralization interpreted to lie geologically below potential massive sulfide mineralization. Drilling in SES20-031, late last year, intersected weakly mineralized silica material interpreted to lie geologically above possible massive sulfide mineralization.”

So despite the absence of economic mineralization, management felt it got sufficient clues to proceed with unraveling the Sesmarias puzzle, and recently commenced drilling of hole SES21-038, located more to the southeast following the 070 S fence, in order to test strike mineralized potential to the south.

When we take a look at the results of SES21-34 and SES21-35, drilled at section 050 N in order to test the northern strike potential, nothing but anomalous levels were hit unfortunately. According to management, not all is lost:

“However, geological complications caused by faulting and folding of the target units appear, for all practical appearances, to have transposed the massive sulfide targets somewhat to the east. As both drill holes now appear to have been collared too far to the west, the results indicate that the Company drilled over the potential massive sulfide zone, just as SES21-032 did in Section 000. SES21-034 crossed mineral horizon gray and black shales with elevated results in indicator metals arsenic and antimony, as well as lead. SES21-035 crossed 12.2 meters of stockwork sulfides in mineral horizon black shales from 333.90 meters to 346.10 meters. Geochemical results show anomalous gold, silver, copper, lead, and zinc levels, as well as elevated indicator metals antimony and arsenic, suggesting close proximity to a potential massive sulfide zone.”

And:

“SES21-035 stockwork intercept results are strongly anomalous and suggest potential for nearby massive sulfide mineralization. The Company is planning to drill further on Section 050 N. Given this anomalism and a good understanding of the geology, it is apparent that the next hole on this section should be collared to the northeast of SES21-035, to target northerly extension of the 8 Lens and potential copper-zinc mineralization.”

This implies that faulting sub-parallel to the current fence directions (050 N, 000, 070 S) potentially displaced mineralized zones to the northeast. This made me wonder if not a few holes should be drilled perpendicular to the sections/fences outlined so far, in order to get a firm grip on faulting and displacements first. CEO Kuhn had this to say about it:

 

“At this point, potential mineralization southeast of Section 000 looks to be following a predictable strike. We collared SES21-038 to test 50 meters strike extension to the SE and will place SES21-039 in a position to test another 50 meters strike extension to the SE. If all goes well, then we will collar another hole on the Section 050 N, to be collared to the northeast of SES21-035. So far, it is quite apparent that the strike of the mineralization is NW-SE, and in this area variably dipping to the NE.”

The best two holes of the latest batch were SES21-033 and SES21-036:

  • SES21-033: 22.25 meters @ 0.42% Copper, 2.07% Zinc; 1.05% Lead; 0.58 ppm Gold and 39.3 ppm Silver in semi-massive to massive sulfide mineralization from 363.00 meters to 385.25 meters, with total amount of sulfides generally increasing with depth, and is terminated by the lower fault
  • SES21-036: 17.00 meters @ 0.39% Copper; 2.11% Zinc; 1.10% Lead; 0.4 ppm Gold; and 34.1 ppm Silver in semi-massive to massive sulfide mineralization from 406.10 meters to 423.20 meters, within a wider zone of sulfide mineralization starting at 341 meters depth. Metal values increased downhole as the amount of sulfides increased until the drillhole passed through semi-massive sulfides at 406.10, and continued through massive mineralization to 423.10 meters, where it is truncated by a fault.

Since the mineralization is defined by faults in the sub-vertical direction, I wondered if these fault planes were (sub-)horizontally oriented or (sub-)vertical, and if this has consequences for geological conceptualization and drill targeting. CEO Kuhn thinks that the folding and faulting is highly complex. The value of drilling on a section allows us to make certain observations of continuity of the structures, and gives us a higher margin of predictability. We see these complexities in the field at Monte da Bela Vista and at Lousal, and the re-logging of our previous drill holes at Sesmarias supports a similar geological interpretation in the SES002 area and the SES010 area.

Please note that these grades still don’t represent economic mineralization, although the calculated CuEq grade comes in at around 2%:

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Avrupa and MATSA are fully aware of this, and Kuhn told me they are clearly looking for average 1% Cu grades in order to make this work. He and MATSA also had no interest in “window dressing” (as he called it) the low copper grades via the byproducts by mentioning CuEq grades. I must say with such credits and resulting CuEq it wouldn’t be uncommon to mention equivalents instead, but as they are predominantly looking for copper, and zinc grades would outscore copper metal values, this is probably the most appropriate thing to do.

“Geological and geochemical results from drilling along Section 000 suggest a downdip projection of about 150 meters of massive sulfides on this section, up to 20 meters thick, and lying within a wider package of lower grade stockwork/replacement sulfide mineralization. Results from both a recent mise-a-la-masse geophysical study and a coincident grid geochemical survey covering the overall 8 Lens target area suggest further massive sulfide potential, both to the northwest and to the southeast.”

As discussed in my last update, the company is also defining exploration targets to the north of the 8 Lens in the Brejo area. Permits for exploration drilling are being processed now, and they are looking to add a second drill rig in the near future to drill these targets. It was my understanding the company would be drilling there now, but according to CEO Kuhn they realized that they were just beginning to figure out the structural complications at the 8 Lens, so they elected to follow the known (or at least partially known) geology and potential mineralization first. He had this to add about the complex geology around hole 008:

“Hole 008 hit a sulfidic zone about 20–30 meters thick, including about 5 meters of massive sulfide at the end, cut off by a fault as you know. In this case, even though we are drilling down, we are actually going up in stratigraphy. So we hit stockwork, then semi-massive, then massive, which is the proper progression stratigraphically, even though we are going downhole. We recognize that there are bounding faults to the mineral hosting zone and that the orientation of these faults suggests a wider zone of potential mineralization as we go down. ”

The company is also re-mapping the Monte da Bela Vista target area and is in the midst of a 375-sample, grid soil collection program in order to define further drill targets.

Another subject discussed in the earlier update was the completion of the VTEM survey, slated for mid-March, so I wondered what the status was. Kuhn replied that the survey was completed and the results returned in April, but he didn’t know if it was appropriate for a separate news release. However, combined with some other updates, the company will issue another news release in the near future, followed by more drill results when they become available.

Afbeelding met water, lucht, buiten, natuur

Automatisch gegenereerde beschrijving

Something that has had my interest for a long time is the Lousal Mine, and its assumed remaining historic 30Mt resource. In the last update the company disclosed that it was a high priority besides the drill program, and it was mapping geological structures that were visible in the old mine workings, and would finish compiling the old data in a few months. We are passed that point now, so again I turned to CEO Kuhn and asked for an update.

As a reminder: initial work there clearly shows similarity of ore control characteristics to what is known now about the Sesmarias massive sulfide mineralization. Historical documents and academic studies (non- compliant to NI 43-101 standards) indicate a universal metal resource at the old mine of over 50 million tonnes of massive sulfide material. Review of original mine records by Avrupa demonstrates that less than 20 million tonnes of ore were actually extracted from Lousal. For me this is the low hanging fruit of Alvalade, and I was very curious about the current status. CEO Kuhn stated the following:

“With all the other work going on, including mapping, sampling, VTEM anomaly follow-up, re-logging of historical drill core, land access permitting work, environmental and social baseline studies, and nearly 4,000 meters of drilling, we just haven’t had the time and staffing to push the Lousal research. The VTEM program was originally scheduled for the second year of the project work, but we had an opportunity (and funding!) to do it earlier, in the midst of the first year, so we took advantage of that ‘gift’ and pushed other projects back a bit. Once we complete all of the necessary annual reporting for the Mining Bureau, then we will see how to get going with all the Lousal data. This will be a complicated digital re-construction, and incredibly important to be as precise as possible as to the location of all the old workings. When we get to the first drilling there, we want to be (more or less) sure that we are targeting rock and not old holes!

“Completion of all this work will give us a better answer for Lousal and MBV. In addition, we have discovered a possible way to access part of the SES002 area without having to deal with landowner issues. So there are a lot of targets easier to get to, with plenty of positive possibilities around the license, already supported by geology, geochem, and geophysics.”

After this, Kuhn added he was actively looking into other projects as well. I was a bit surprised by this, as Alvalade with Lousal as a base with a historical resource and MATSA as a JV partner is everything a small prospect generator like Avrupa could wish for. Other projects would cost precious cash and resources, as it already seems Avrupa staff is spread out over all Alvalade work, and new projects would inherently have exploration risk, starting from zero all over again. If Avrupa could get Lousal and Sesmarias to a combined 50Mt @1% Cu and some nice by products to go with that, at current metal prices we would be looking at a US$500–700 million NPV project for the JV. In my view it is impossible for Avrupa to find a better project at an acquisition price under C$7–10 million, not even talking about the 100-150% dilution which would be necessary.

So I wondered why MATSA isn’t throwing more money at Alvalade, and for example start doing serious work on Lousal and use three or four drill rigs combined on Lousal and Sesmarias. Regarding drilling around underground workings I referred to another client of mine, Meridian Mining, which is doing exactly this at their Cabaçal copper-gold VMS project in Brazil. Kuhn answered this:

“Rigs are very difficult to find, and experienced drillers even more difficult! MATSA has two rigs going on their projects in Spain. The MATSA chief geo was here last week, and would like a second rig in the near future, but deals with budget constraints at the end of year 1. We have about 350K euros left in the year 1 budget, and he wants to utilize that in the way we are going, before expanding in year 2.”

Let’s see what MATSA will allow to be budgeted into Alvalade. The metal prices surely aren’t any objection, as copper recently went to all-time highs and is still hovering at US$4.50/lb, and zinc isn’t exactly bad either at US$1.37/lb.

One last subject I wanted to touch upon is the company’s intention to do a financing soon, as several funds already expressed their interest back in Q1, 2021, and the roll back has been a while now, with the share price again under 10c. CEO Kuhn had this to say about it: “Timing of a financing is a subject for discussion. It would be very helpful to get a few more good drill holes, of course. The relatively slow progress and not a lot of economic drill results so far probably decreased support now for a financing. However, with some new possibilities at Avrupa and continued positive results from Alvalade, there may be good reason to consider a financing again. Copper and zinc prices are high, and general sentiment for exploration is certainly better than it has been in a long time.”

It will be obvious how important good drill results will be for Avrupa Minerals, despite the MATSA JV, which has fully funded exploration work for the foreseeable future.

Conclusion

Avrupa Minerals is still in the process of chasing economic mineralization at Sesmarias, and from the looks of the latest drill results and the provided insights by management it seems they are getting closer and closer. I can’t say I fully understand the decision of MATSA not to pursue the historical Lousal resource much more forcefully, but as MATSA is budgeting this campaign, Avrupa can only wait patiently for its plans. In the meantime, Avrupa is looking to acquire or option new projects, and maybe this will provide the company with interesting opportunities. For now, ongoing drilling could finally provide the company with economic intercepts, which could incentivize MATSA to speed things up.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, in order to get an email notice of my new articles soon after they are published.

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Automatisch gegenereerde beschrijving

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

 

Disclaimer: The author is not a registered investment advisor, and currently has a long position in this stock. Avrupa Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.avrupaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avrupa Minerals, companies mentioned in this article.

Charts and graphics provided by the author.

Environmental Tech Firm’s Stock May Be in Position to Reach New Highs

Source: Clive Maund for Streetwise Reports   06/11/2021

Technical analyst Clive Maund reads Bion Environmental Technologies’ chart and explains why he has a Buy recommendation on the stock.

We have gotten nowhere fast with Bion Environmental Technologies Inc. (BNET:OTCQB) stock, having bought it at the points shown on its latest 6-month chart below, as it has remained stuck in a clearly defined trading range, and in recent weeks have sat it out as it has drifted slowly lower back to support within the downtrend shown. However, today’s action was bullish, with a prominent bull hammer forming right at the support that bust it out of the downtrend. This implies that at the least it should rally back up to the resistance of the top of the trading range again, and there are several factors which suggest that it could do considerably more than that.

First of all the earlier overbought condition has not just fully unwound, the stock is now somewhat oversold. Meanwhile the rising 200-day moving average has caught up more with the price which puts it in a better position to mount a significant rally and lastly the Accumulation line has remained buoyant as it barely dropped on the recent reaction, which suggests resilience.

Bion Environmental Technologies chart

 

We therefore stay long for a rally at least to the top of the trading range and it is rated a buy here for that. If it gets there we will review its technical condition and if it looks like it is going to stall out we will probably dump it for a minor profit but if it continues to look good we’ll stick with it.

Bion Environmental Tech website.

Bion Environmental Tech, BNET on OTC, closed at $1.52 on 8th June 2021.

Originally posted on CliveMaund.com at 6.50 pm EDT on 8th June 2021.

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.

Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Bion Environmental Technologies. Click here for important disclosures about sponsor fees.
As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Bion Environmental Technologies. Please click here for more information.
The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Bion Environmental Technologies, a company mentioned in this article.

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.

All You Need To Know About The Upcoming FOMC, BOJ & SNB Meetings

By Orbex

There are several major interest rate decisions coming up this week.

But vaccination rates still aren’t high enough to put aside concern about a new surge in covid cases. Moreover, the threat of new variants still remains.

So, the general theme among expectations is cautiously waiting, with perhaps some tweaking of expectations for the coming years. Central banks are likely to try to do everything they can to not spook the markets.

Overnight, AstraZeneca posted a report showing their vaccine was 92% effective against the latest covid variant of concern, the delta one. The mechanism of action is similar to other vaccines. This suggests that Pfizer’s and JNJ’s would be just as effective.

However, apparently, the markets weren’t too concerned about variants, as the news didn’t impact sentiment all that much.

What to look out for the FOMC

Generally, we can expect the Fed to not change policy. This effectively means keeping the rate the same, as well as asset purchases.

A potential concern is whether Chairman Powell will open the door to hinting at slowing down the pace of asset purchases. The consensus among analysts is that it is still too soon for the Fed to signal that. They would likely wait until the end of summer.

Another concern is how the market might react to the Fed’s updated guidance. The dot-plot is generally expected to show a consensus that rate liftoff will happen in 2023. At least, that’s what’s being priced in by the market.

If the Fed has a more dovish point, it could provide some weakness for the dollar and support stocks.

The Fed may also raise its inflation outlook for this year, but keep it stable for next year and the year after. If the Fed was to raise its outlook for inflation next year, it might speak to general anxiety in the market that inflation is likely to rise, and hurt risk sentiment.

However, the Fed could double down on the idea that rate liftoff and tapering will depend on job numbers, not inflation.

BOJ expected to push ahead with support

In terms of formal policy, we can generally expect the BOJ to keep things where they are.

There is a consensus that they will likely extend the emergency help provided to businesses as part of the pandemic, which will expire in September. However, there is still time for the BOJ to extend it at the next meeting.

Nevertheless, the consensus is that they will do it now to give more clarity to decision-makers.

In the very rare event that the BOJ does not, then we could see the Nikkei index drop, and the yen get stronger initially. But the consternation in the markets over the surprise might cause the yen to turn around rather quickly and weaken.

Generally, Japan has avoided some of the inflationary pressures that other countries have, giving the BOJ more room to stay accommodative.

SNB to stay the course

Experts anticipate that the Swiss National Bank policy decision will remain the same. The SNB will likely repeat their mantra that the frank is too strong, to maintain their current intervention level.

The high price of the frank generally means that the SNB has no worries about inflation for the foreseeable future. Indeed, this allows them to remain as accommodative as they like.

By Orbex