Recap for August 26, 2021

Not a lot of action today, at least in the markets, though plenty in the news such as the crisis in Afghanistan. I will keep the post short and to the point, as there wasn’t even an intraday buy signal in the mining sector until late in the afternoon. We added to our Wallbridge Mining (WLBMF) shares, but that was our only activity today. We will look to add to this position as we are not yet up to a full-risk size, but there is no rush as we are heading into September which is historically the weakest month of the year (for the general markets). It feels like we are in the “quiet before the storm” period, so will keep some powder dry to take advantage of potentially lower prices, though I still think the lows might already be behind us.

Let’s looks at the WEEKLY chart of Wallbridge Mining, one of Eric Sprott’s largest junior explorer holdings the last time I checked his SEDI holdings here. I’ve included the fibonacci retracement levels from the most recent low of the year-long pullback to the all-time high, which strangely enough occurred after the August 2020 high the sector made, when it made a second and higher high. This was an obvious show of strength, and one reason it was on my buy list. I expect Wallbridge to perform among the best once the group turns around.

Wallbridge Mining’s weekly chart shows a nice uptrend, with plenty of upside and new all-time high in Sept.

Trendlines are very subjective in nature, so some might not agree with how I have drawn the uptrend, but that isn’t the most important takeaway from the chart. Prices don’t lie, and they have been in an overall uptrend for a few years now. With this lengthy pullback time-wise, to old resistance levels which should now be support, when would one buy into this stock if they wouldn’t do so now? 🙂