Although I originally intended to buy SWC – Stillwater Mining, over the course of the last few days I changed my mind. I did buy ANO – Anooraq Resources instead as immediate buying pressure within the ascending triangle pattern is more pronounced. ANO is trading much closer to the upper boundary of the triangle, therefore has less overhead resistance. If the Platinum and Palladium stocks are to break out, ANO should outperform as it will literally be the first one to shoot out of the gate.
Anooraq is listed both in the US and in Canada. The reason why I bought the US listed stock is twofold. The first reason is that ANO is more liquid than ARQ.V. The second one is because it is easier to compare it with SWC as it is trading in the same currency. That allows for a direct comparison of the charts. Talking about comparing both stocks, I once again want to draw your attention to the Platinum Sector Overview Chart on my public list. A picture says more than a thousand words. The beauty of the Sector Overview Charts is their objective nature. There is no need to ‘believe’ or ‘trust’ me. One click and you can check if what I talk about makes sense or doesn’t. As of yet, according to the sector overview chart ANO is the best looking in the PGM sector.
Anooraq Resources is a platinum group metals mining, exploration and development company, controlling the third largest PGM resource base in South Africa. Platinum Group Metals include: Platinum, Palladium, Rhodium, Osmium, Ruthenium and Iridium.
Up-to-date ANO – Anooraq Resources chart on my public list.
Today was a tough day in the markets. ANO managed to hold up very well and volume is starting to increase significantly. Although the stock couldn’t close near the day’s high the overall chart pattern is bullish. We have a longer term cup with handle pattern and if the stock can take out the 1.55 level on a closing basis it will attract technical buying that could lead to an explosive move to the upside. Time will tell.
From ANO – Anooraq’s website:
Anooraq Resources is a black economic empowerment (BEE) platinum group metals (PGM) mining, exploration and development company, with assets located on the Bushveld Igneous Complex of South Africa. The Bushveld Complex hosts numerous PGM mines and prospects, mainly within the Merensky and UG2 reefs and the Platreef mineralized horizons. Anooraq completed the acquisition of a controlling interest in Bokoni Platinum Mines (formerly Lebowa Platinum Mines) from Anglo Platinum in July 2009, and now operates this four-shaft mine complex, currently producing some 150 000 4E ounces on an annualised basis. The Bokoni acquisition also gives Anooraq controlling interests in the Ga-Phasha Project, located adjacent to Bokoni, and the Boikgantsho and Kwanda Projects.
The six PGMs, namely platinum, palladium, rhodium, osmium, ruthenium and iridium, occur together in nature alongside nickel, copper and gold. These metals have uses across various technological and industrial fields, with the automotive and jewellery sectors being key. South Africa’s Bushveld Igneous Complex is host to the largest known PGM resource in the world, and 2009 platinum production is anticipated to be 4.725 million ounces, almost 80% of global output (source: Johnson Matthey).
Anooraq has a primary listing on the TSX Venture Exchange (TSXV: ARQ), and secondary listings on the NYSE: AMEX (ARO) and the JSE Limited (JSE: ARQ).
Taking small losses is part of the game. Taking large losses can take you out of the game. – Doug Kass
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Have a great evening!
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