Andes Gold Corp (AGCZ)

[SPM555]

AGCZ got beat down along with every miner out there during the bear market for metals of the past couple of years, but as usual the market goes overboard and well past where it should reasonably be priced, imo. Here's the longer term look to the chart to show you what I speak of.



First off you've got that nice bullish divergence taking place during the entire downtrend, which is always something to take note of. It's not a timing indication, just more of a sign that the setup is getting more and more primed as you see more and more lower lows in price met with higher lows in the momentum indicator.

As for timing, you need to wait for the price to do something significantly bullish and then watch the reaction afterwords. In this case in Feb the price spiked on healthy volume and broke a key long term trendline, the main one holding the price down during it's 2 year downtrend.It hasn't formed a higher high yet, but it looks very likely that this will be a higher low, and the low is also occurring above that trendline I drew. Maybe or maybe not will it come all the way back down to test that trendline for support, imo the selling has dried up so much that I kind of doubt it will have much more juice to the downside.

So leg #1 was that break of the trendline and rallly up to the .001 - .0015 range, and since then it's chilled out, pulled back, and consolidated on light tapering volume. The next thing I'm not looking for is the volume to start to spike again and the price to start to test and break some of these key levels. .001 is always a key line for trip zeros that break into dub zeros, but in addition you have the 50 and 200 day MAs around .0009 as well as the 50 week MA at .0009, so that whole .0009 - .001 range is pretty key imo.

Not to be overlooked is the inverse head and shoulders pattern that appears to be setting up and signalling a reversal of the downtrend as well. Pretty much textbook so far, but the key trigger will be breaking the trendline from armpit to armpit, and it's also interesting that the trigger line goes back and seems to line up as a historical trendline as well. I'll say .0012 for that trendline/trigger line, but then you have the last peak from Feb around .0015 or so, so I'll say that whole .0012 - .0015 range is a key trigger/resistance zone. Once/If it can completely clear all that then I'm saying it's a confirmed bottom and should/could be a big time runner.

As I've mentioned this isn't just a chart play though, I like that it's in the miner sector as I believe the metals are primed to have a good year and I love that this is a trip zero that is producing, filing, and occasionally releasing PRs. The safe bet would be to watch and see if it can eventually heat back up and take out this ceiling/ H&S trigger line, or f you like the R2R at these levels as much as I do you can scoop some during this quiet phase and cross your fingers that it eventually does trigger and run.