Mining Stock Up 37% in First Day of Trading on NYSE
The miner is developing the historical Homestake Mining properties in South Dakota.
Dakota Gold Corp. (DC:NYSE), formerly the rather clumsily named Dakota Territory Resource Corp., was the subject of an email alert sent out before the open this morning about it and Red Cat Holdings, with the relevant parts of it reading as follows...
"There's big news on 2 of our stocks. Dakota Territory Resource Corp, DTRC, $5.00, that we haven't looked at for a while, ceased trading at the end of March pending its listing on the NYSE, and will start trading on this market this morning under the new and less clumsy name Dakota Gold. With its new found respectability, especially as its price is high enough to attract institutional interest, it is likely to catch up with the big gold's rallies of recent weeks, made more likely by what looks like a bull Flag / Pennant forming since mid-February. So we stay long and it is rated a strong buy here.
There is insufficient time to write these 2 stocks up properly before the opening this morning. So this email alert is intended to give you an early "heads up" before trading starts. Articles on both of them will be posted later on the site."
Those of you who bought near to the open have done well, as it opened little changed from when it was halted on 30th March pending its NYSE listing, but is now up 23% on the day at the time of writing after having risen much higher.
Dakota is a stock that we have followed for quite a while and we profited from its big runup in early to mid-2021. After its rather dramatic peak in the summer of 2021 that can be seen on its 15-month chart below, it initially reacted and then ran off into a long horizontal trading range that continued right up to today.
Early in February it ran sharply up to resistance at the top of the trading range and then reacted back to settle into a Flag/Pennant consolidation pattern which implied that it was setting up to break strongly higher, as has happened this morning. Two additional positive factors that we can observe on this chart are the way that the Accumulation line has improved over the past couple of months and the 200-day moving average catching up to the price after being way below it for much of last year, which partly explains why the stock stalled out for so long.
In addition to showing recent action in much more detail, the 6-month chart reveals various additional beneficial factors in play. One is the upside volume build up of the past couple of weeks, another is the MACD crossing its moving average in the recent past after almost fully unwinding its earlier overbought condition. Lastly, there was bullish cross of the moving averages a couple of weeks ago.
There are several big reasons why Dakota Gold is considered to be one of the top investments in the sector. Probably the biggest is that the company is developing the old Homestake Mining properties in South Dakota, which were prodigiously productive even using the relatively basic mining techniques of the day, about 90 years ago - now of course they are much more sophisticated. Another, as already mentioned, is that the stock will attract big investors in the sector as it now trades on the NYSE. Finally, as the world moves towards hyperinflation it will be impossible for any manipulative or repressive forces to prevent gold and all gold investments soaring. So Dakota Gold has everything going for it.
We last bought Dakota Gold on the 3rd February at a pretty good price of about $4.50, and if you heeded this morning's email alert you may have bought it or bought it again early this morning at something above $5.02, so we are already well up. No further action is required on our part save to say that positions may be added to or new purchases made on dips, such as we are now seeing as the price has just backed off significantly from this morning's highs into buying territory.
Postscript added the following morning (6th). The new Dakota Gold had a very good day yesterday, closing up 37% on the day after having risen higher still intraday, as we can see on its 1-day chart for yesterday below. If you bought soon after the open as suggested, you will have done well. Given the great prospects for the company there is thought to be little reason to sell at this juncture.
Dakota Gold Corp. website
Dakota Gold Corp., DC, trading at $6.19 at 11.58 am EDT on 5th April 2022.
Originally posted on CliveMaund.com at 12.45 pm EDT on 5th April 2022.
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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Charts provided by the author.
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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 stock market 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.