Some subscribers have asked me about ANI.V – Animas Resources. So I guess quite a few more might be interested in an ANI.V review as well. The company released its first drill results and a quick look at the chart tells the story. There is no need to discuss the results. The market doesn’t like them. From a technical trader’s perspective the chart is broken. That’s why I have annotated it accordingly. The stock comes off my public list soon.
That being said more drill results will be published over time. Time will tell if they can find the goods. What I don’t like about the stock is the huge psychological damage that occured. Management delayed drilling in the past and had 2 years to find the best drill targets. They basically came up with dust. ANI.V is now in a situation where it has to deal with ‘multiple’ overhead resistance. It will have to fight through a lot of supply and additionally will have to regain investor confidence.
So when I say a ‘chart is broken’ it doesn’t mean a stock won’t ever come back. Simply wait until good results come out. I wouldn’t buy below 1.20. Let the stock prove itself chartwise. Let the drills prove there is gold out there. Not just a bit of gold. Enough gold to sustain a much higher stock price.
My job as a technical trader is to buy strong charts with excellent technicals. I am not in the business of buying ‘bargains’ or ‘extreme technical weakness’. The story is still compelling that’s why I will keep monitoring ANI.V in the background.
Have a great evening!