Strong Drill Results for Platinum Group Metals; Special Report by Leading Financial Web Site Penny Stock Detectives
In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that shareholders should search for junior mining stocks in a sector that is going to have less global supply, like platinum.
(prHWY.com) July 3, 2012 - New York, NY -- In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that shareholders should search for junior mining stocks in a sector that is going to have less global supply, like platinum. Cekerevac notes that Platinum Group Metals reported that it found new areas with multiple layers of high-grade mineralization at depths much shallower than expected. "In addition to unknowns, such as total reserves found, platinum investing can be difficult, as it isn't easy to find or to extract this commodity," comments Cekerevac. "This also provides a positive, as junior mining stocks that do have a stable supply have a market edge." He continues, acknowledging that Platinum Group Metals is currently exploring its Waterberg project property, and while its initial results are positive, the company continues to drill while investors await further results. While this early news is positive, one can't simply buy a stock based on such preliminary data, Cekerevac notes. Instead, he suggests looking at the technical analysis of junior mining companies to see what other investors are doing with their funds. The stock has traded up to and bounced down below the 200-day moving average (MA). In technical analysis, the 200-day MA is quite important. It can act as both support and resistance. If the stock doesn't move sharply up, we will see the 50-day MA cross below the 200-day MA. Many investors who use technical analysis see this as quite bearish, Cekerevac explains. The Penny Stock Detectives editor believes it is a mistake to buy or sell based on this cross. Instead, he advises to take note of the position of the stock in relation to both of these moving averages. In technical analysis, the key is to understand the whole picture of what's really happening. Many investors using technical analysis will be cautious, waiting for a move above the 200-day MA, which would also coincide with a move above another important area in technical analysis: that of the 50% retracement level. At this point, it is quite possible the stock will sell off to its low of $0.82.believes Cekerevac. "Many who follow technical analysis will look at that low as a support area. Of course, technical analysis doesn't guarantee such support; it merely indicates an area of interest," To see the full article and to learn more about Penny Stock Detectives, visit
www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at
www.pennystockdetectives.com.
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