Silef Silver Elephant Mining Corp. Double Bottom Here is classic double bottom formed over 9 months and the stock has confirmed movement to the upside.
ELEF trade ideas
Silver Elephant in a Bottoming Pattern?I'm wondering if SILEF has finally formed a bottoming pattern (which I coin the "elephant feet pattern") by marking an uptrend with a +$0.01 higher low. The previous cascade downward was caused by either a stock consolidation and split... one or the other. March 4th's $0.99 could be the bottom for now. Zooming out a few years, previous bottoms were $0.98 & $0.96. Every cent counts for penny stocks, so any future price below $0.99 is a warning sign. SILEF has a ton of torque, often rocketing up soon after bottoming. I'm curious if it can make it back up to maybe $2. I mapped the way back up with Fib retracement and resistence levels.
The company's coal mine in Mongolia is in production, otherwise its silver mines in Bolivia and nickel and vanadium mines in North America could come into production in the next year or so. The company owns 37% of the stock so it doesn't have an interest in the share price remaining low. Trade wisely, my friends.
silefThis penny stock has some very important traits showing in this chart pattern-
The volume has increased and before the stock released news.
The news release states the company will spin off 3 subsidiaries to SILEF shareholders.
This chart demonstrates the insiders stock ownership just prior tot he release.
We must conclude that the spinoff are worth a lot more then the SILEF at .20 cents.
silefThe small miner with control of huge silver property and Vanadium mines is seeing some very interesting trading. The stock has been in a narrow range a long time and news has continued to be bullish. I see a chart pattern that says this stock is range bound. Over the last months the stock has been under accumulation by well financed buyers. I suspect that insider info has been the reason. This company has the rights to huge silver property and US base Vanadium mines. I believe we should expect some merger or sale that would increase stock owners values substantially. If they were bought out the gain would be 3-4 times, if they entered agreement to have others develop silver assets and take back percentage it would set the company with substantial long term income opportunities. This would make the company attractive to investment trusts. Larger miner seeking silver property to mine starting buying up shares is the most likely explanation today. But what I find most attractive is the limited downside. For $30,000 you could control 100,000 shares that are worth minimum $100,000 in the next 6 months.
Don't take my word for it look at the assets yourself.
SILEF Silver Mining Bolivia I follow big money mining insiders who buy large blocks of companies. Eric Sprout bought into this Silver mine in Bolivia. They have found lots of silver on the property but are still in negotiations with the government for the rights to mine the property. So there is risk but again that is why I follow the Eric Sprout. The chart is obviously bullish. The company may get the rights and sell those rights to others and never mine.
