If you look at a 6 month CCU chart the rise in share price (although large) looks quite sustainable and sits within a channel. 10 days ago it started rising in a much more unruly fashion and we've seen a couple of gaps form on the chart.
However the volume of stock traded is still relatively low. This is no Hot Copper darling yet and yesterday was the first time in a while where we had a significant number of posts in the forum. Still the number of views per post is nothing compared to companies like CCC where the page views for yesterday are around double CCUs.
The way the sellers dried up yesterday morning was an indication to me that there is still a relatively low level of day traders playing this stock. There are only ever around 20-30 market players on either the buy/sell side waiting to finalise a position, on a stock that traders are actively involved in like SBL, FML or CCC this number of players can be seen at one price point on either side.
Looking at volume traded the activity over the last week seems no more extreme than any other spikes we've seen over the last 6 months.
CCU has a lot going for it:
- Largest resource (of Australian pure Silver plays) - Close to finance deal - Less than 12 months until production (all going to plan) - Potential very low cash costs if lead can be extracted - Recently raised capital at premium to SP - Exploration upside is another 40m/oz+ (company figures) - Tight share register/low number of shares
And let's face it, the number of quality Silver plays on the ASX is very limited. What happens from here if Silver once again rallies to new multidecade highs and investors want leveraged exposure to it? CCU (and other Silver juniors) is primed to fly.
It's going to be an interesting day today, but let's face it, whether it goes up down or sideways today I think we all know where this stock is heading over a 3+ month time frame...
CCU Price at posting:
82.2¢ Sentiment: LT Buy Disclosure: Held
