By The Gold Report

Source: Clive Maund for Streetwise Reports   04/03/2018

Technical analyst Clive Maund profiles a cobalt company active in the Democratic Republic of Congo.

Cobalt is one of the most important minerals in existence, and is vital for the fast growing electric car industry and other applications. Getting on for half the world’s cobalt is located in the DRC (Democratic Republic of Congo) in Africa, and while this may conjure up images of groups of youths driving round in jeeps strafing people with machine guns and setting fire to villages, etc., the Congo is a huge country with very different areas, and the mining industry there certainly has the clout to buy whatever protection is necessary, especially as the Chinese have a big presence in Africa.

The reason that the stock of Bankers Cobalt Corp. (BANC:TSX.V) has dropped a lot since the start of the year appears to have much more to do with a complete lack of news out of the company since then, rather than problems relating to the stability of the country. As we can see on its latest 6-month chart, when it bottomed a week ago, it had lost three-quarters of its value at the start of the year, which means it is cheap, so the positive drilling results just released should result in it turning higher here, and it would appear that select investors were anticipating this, for as we can see on the chart, upside volume has built up in recent days. The downtrend in force so far this year looks like it has run its course, especially as it has brought the price down below a still rising 200-day moving average.

The 3-year chart enables us to see the bigger picture of what is going on in this stock. On this chart we can see that it broke out last fall from a large Pan Base that had formed at a very low level, which it did with a gap and heavy volume, which was and is bullish. It got ahead of itself and reacted back hard this year, so hard that it gave back most of the gains made on the spike, with this decline completing the Handle of the large Pan & Handle base. Now it looks like it has overdone itself on the downside and should turn up again here.

In conclusion, Bankers Cobalt is rated an immediate buy here for a recovery from oversold expedited by the just-released positive drilling results, which were actually for copper primarily, not cobalt. Bankers Cobalt trades in light but reasonable volumes on the U.S. OTC market. There are 56.6 million shares in issue.

Bankers Cobalt website

Bankers Cobalt Corp, BANC.V, NDENF on OTC, closed at C$0.32, $0.252 on 3rd April 18.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
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Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: BANC:TSX.V,
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