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Strong Drill Results Boost This Silver Miner, According to Leading Financial Site Penny Stock Detectives(June 06, 2012)
New York, NY (PRWEB) June 06, 2012
In a recent Penny Stock Detectives article, Sasha Cekerevac argues that, even while silver prices pull back, junior mining companies continue searching for more silver deposits. Cekerevac believes this is because the cost of extracting silver is still below prices that junior mining companies can receive for silver once its out of the ground.
The problem when it comes to exploration work is if the company hits a large deposit, the stock can move up sharply, notes Cekerevac, but if the holes are empty, then the stock can sell off rather quickly.
One of the more interesting silver junior mining companies is Endeavour Silver. The company recently discovered high-grade silver and gold through early drilling results. At the firms San Sebastian property, located in Mexico, the company announced exciting results that appear to show that the property will have significant silver and gold deposits, comments Cekerevac.
For any junior mining companies, this early stage is difficult to evaluate, as the full extent of these results are unknown. Since these are based off a few drill holes, Cekerevac says that more results are needed to better gauge exactly how much silver is in the ground. But, the preliminary results are encouraging and Cekerevac thinks its worth keeping this stock on ones watch list.
According to Cekerevac, when looking at silver junior mining companies, it helps to view the long-term chart and see where the stock is currently, relative to its history. Endeavour Silver has recently broken a long-term uptrend going back to 2009, as reported in Penny Stock Detectives. The current price point at $8.00 is a 50% retracement level, very important in technical analysis. There should be some support coming in at the current price point; if this fails, then technical analysis would suggest that the 61.8% level at approximately $7.00 would be support. A breach of this area would be extremely troublesome, says Cekerevac, as a drop to below $5.00 would be possible. Most likely the stock will be range-bound until further drill results are released.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
To see the full article and to learn more about Penny Stock Detectives, visit http://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 http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss Thiswhich highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/6/prweb9574902.htm.
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