Get Ready, Traders!
We did nice trading one form of “green” a few days ago and now I’d like to shift gears from green to GOLD with Earth Life Sciences Inc. (CLTS).
CLTS bought a 100% stake in two Canadian gold properties a few months ago. With demand for bullion soaring right now, mining plays are hot.
At least one of these projects has a special “all terrain” quality that can keep on ticking like Energizer throughout the economic cycle. More below!
But up here, let’s get real: gold is sizzling hot stuff here between the Fed being on hold and the Brexit making waves. CLTS is a gold play.
And as a result, it’s no surprise the volume bars have been reaching for heaven in the last few weeks:
Still not huge turnover on CLTS yet every day, but the lines are getting high enough to make it worth our while to dance with this $0.06 stock.
More importantly, the uptick in volume has yet to break CLTS out of its June trading band yet . . . although the pressure does seem to be building!
What do they say, “price follows volume?” They say it because when upside interest picks up, supply and demand logically forces the bid to climb.
Right now we are not QUITE there, with CLTS still bouncing around in the $0.04-$0.07 channel, but all it takes is a move past $0.07 to raise the roof.
RSI and MACD tell that story loud and clear. This chart can go either way now after weeks of up-and-down sideways consolidation!
And now that the boulder has started budging, I’m hoping CLTS will be able to convert current ceiling to future FLOOR and look up at big sky.
If $0.07 cracks, the 50-day line is pretty far up at $0.077. From there, it’s open orbit to the 200-day frontier above $0.13 and then “heaven” up there.
“Heaven,” by the way, is the highest point CLTS traded since getting serious about its gold projects, so that’s a good horizon to keep in mind.
Now what about them projects? They’re early stage, we know that. A far stretch from mining and on the obscure side.
But CLTS isn’t just waiting for the gold to jump out of the gravel! They’re taking the sensible approach of crunching the low-grade gravel for sale.
White silica makes up a big chunk of the ore body by weight. It’s good in gardens, fish tanks and it can retail for $1-$2 per pound.
CLTS has picked a system that can sort 200 TONS of the stuff every HOUR for shipping to the garden stores. That’s healthy revenue right there!
Meanwhile the gold stays where it is as CLTS sells the gravel out from AROUND it! Radical approach to near-term revenue!
Anyhow, I think it’s unusual, maybe unique. And here in Commander Country, it has a fair shot at piggybacking CLTS to the next level.
More on that next level tomorrow, but here at the “gravel” stage I hope a few of you can already see the glint of gold shining through!
Happy, Happy, Happy Trading!
~ Stock Commander
yourstockcommander@gmail.com
