Very positive day IMO technically which reflects how fundamentally undervalued ARD is at the moment. Whilst all the other pure silver plays were getting hammered today(SVL, CCU and AYN)following drops in the spot silver price, ARD had a solid breakout. The two things that characterises a good breakout are extremely high volume and a finish near the day's high. + 23.68% finishing at $0.235 near the high of $0.26 with volume in excess of 5.2M seems like a pretty solid breakout to me.
Furthermore, all the technicals look ready too for a massive run. Stochastics about to make a bullish divergence, bullish divergence in MACD and money flow/relative strength index around the 50-60 level.
It is also worth noting that ARDOs are lagging behind as at the moment the market sees silver's spike as a short term movement and not sustainable which then affects the share price. Either way, as if the powerful leverage in ARDOs wasn't enough they're lagging by nearly a full cent which is approximately another easy 20% to be made.
Overall, I'm extremely bullish on silver itself and have chosen ARD/O as my share based silver exposure on the basis of how incredibly undervalued it is. I find it ridiclous that the market gives ARD an approximate EV of $30M for 100% interest of 32M Oz Ag, 65K Oz Au + other base metals. Have a look at AYN, CCU and SVL then back at ARD. IMO, this breakout is the start of some serious catching up.
ARD Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held
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