current chart, page-12

Here we are again and BNL is once more testing support and looks to have no friends in sight (this is common when testing any support).

The recent run up was quite dramatic (and profitable), however the sell off that followed was also dramatic and looks to be a little overcooked.

So why the sell off and where to next?

Leading up to drilling update hopes were high, especially after such significant results previously (8.8%).
Instead of another boomer ann with grades off the charts BNL holders were hit with a small delay.

As we all know the market doesn't like delays, especially when there's any type of uncertainty and boy do we have that atm.

What some newer investors don't seem to understand is that just because your portfolio is red it does not mean there are no opportunities to make money in markets - cause theres plenty (but more on that later).

In November BNL announced an 8.8% helium strike.
For those unaware what this means, it means its VERY significant.
Considering helium is viable to extract at grades as low as 0.2% the 8.8% reported is incredible.
What makes it even juicier is it's in the USA - investors should not discount how strategically significant that is...

Unfortunately the latest drilling update informed the market of some temporary water issues but IMO the market overreacted as the odds of another substantial hit are right up there - especially when taking into account previous results and reports of helium being present in the latest update.

Snippet from ann below
Lets take a look at the charts now and we'll talk opportunity later...

BNL daily below
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As you can see from the above chart the sell down was quite dramatic.
This resulted in a test on support (S1) yesterday, which held.

If S1 was to fail the next area of support is quite close (S2)
You can see the High Volume Nodes between 3.2-3.6c which I've marked below.
If S1 was to fail I would expect strong buying to step in around this area.
This would also put BNL into oversold and considering FA I would not expect it to stay there for long (if it actually drops that low)

The odds of a bounce from S1 is still quite high with numerous contact points (and rejections) over the last few months.
If there is a bounce here I'd expect the POC (red line) to be the first magnet
POC is at 5.4c for the last 12mths (this is level for most transactions over the last year)

Once current delay is resolved I would expect another test on channel top.
If results are even close to previous testing then we should see a break out from that channel/flag formation.

Now lets talk opportunity...

As I mentioned earlier, an overall market sell off doesn't mean everything is destined to lose.

One of the major reasons the market is selling off is the cost of energy and commodities due to geo-political tensions - thus increasing an already red hot inflationary period.
You'll notice many of the companies in those sectors have had incredible runs since the recent turmoil started.
What you'll also notice is helium has been seemingly quiet during this period and had no such gains like most other commodities.

Does this mean helium hasn't been effected by the latest macro news?
Hell no!!!

Helium has also felt the effects and is currently seeing a squeeze that could actually be much much greater then most other mainstream commodities.

The reason we don't hear about it is due to there being no mainstream spot market to see such pressures played out day to day.

Well I'm here to tell you it's certainly happening and it may not be reported in mainstream media but the pressures are being felt and will spill over to mainstream problems if its not sorted out quickly (you wouldn't be reading this post if helium was not readily available to global tech juggernauts).

https://www.gasworld.com/helium-markets-now-experiencing-helium-shortage-40/2022650.article

It didn't seem long ago that Helium Shortage 3.0 was upon us but looks like here we go again and this one looks very serious considering the 3 major global players are out of action USA, Qatar and Russia.
The last potentially putting itself completely out of the picture with its recent aggression toward the Ukraine (Russia was expected to supply over a quarter of global helium by 2025 - so it's kind of a big deal).

We have seen some incredible gains in commodities of late - Nickel the latest with a squeeze that pushed pricing up by around 90% overnight alone! And obviously most are aware of the big gains of the mainstream gold and oil markets recently.

Well you may want to look into what recent macro events have done to helium markets as the gains here make all other commodities look like bank interest at the moment...

Helium pricing has surged '>4x where they were in 2021'
*source Edelgas Group (below)
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IMO this latest pushdown for BNL could be presenting investors with one of the best buying opportunities in the current crisis.

However, markets are incredibly volatile atm and juniors can feel this most so it won't bean easy ride but its certainly one I'm looking to take as the upside here is incredible.

As always, trade safe and DYOR
GLTAH