The graphite sector has had a nice pullback and consolidation over the month of April. I have been watching the space closely and now feel we’ve seen the bottom in most graphite stocks. The reversal that has just begun could end up being quite profitable as the stocks retest highs in the weeks ahead. You’ll see from several charts of the leaders in the sector below, that MACD (bottom right of each chart) has turned and looking identical in each stock. The crossover to positive territory is most likely days away. Waiting for that to occur is fine for more conservative traders but I have loaded up in Flinders, Standard, and Northern Graphite shares yesterday and this morning in anticipation of a further rally.

 

 

 

Certainly, we already own a ton of the king in the junior graphite space, Zenyatta Ventures (ZEN.V/ZENYF.PK) so we will not get into the stock in detail here. Except to say we feel ZEN will be a leader (and already is) going forward in the sector and has the most exciting discovery in graphite.

 

 

 

 

 

That’s all in this update, we just wanted to pass along the idea that the graphite stocks are reversing and we see profitable trades across the sector. We may see the sector in new high territory on this run but we see, at minimum, stocks retesting their 52 week highs.

 

Best,

Eric Muschinski

Gold Investment Letter

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