So where do the juniors go from here and what about Scorpio Mining? A while back August 29th, in blog called "It's PM Seasonal Time- tiny silvers" I listed Sorpio, but due to lack of time and space, didn't do a commentary on it or chart. So here is MHO on Scorpio which was on that original tiny silver list........
Just before the close today it is trading at .58 cents. It operates in Mexico and it's main asset is the 100% owned Nuestra Senora mine. Cash flow and 2nd quarter of commercial production shows improvement in throughput in tonnes per day and costs per tonne. The managed a small profit in 2nd quarter and are commited to be a profitable mid tier silver producer. this is the link to their website.....
From a TA point of view, the short term chart has some bigger volatility. The simple way of looking at it would be that the stock is making new highs and higher lows. Thus you can draw a line connecting all lows moving up and do the same connecting the highs and you have a clear channel of oversold-overbougth as a guide for buys. The RSI is in bullish mode and you want to see it remain over the 50 line. It is not overbought at moment and looks like it has a bit of room to go to visit the upper parts of the RSI and trend channel. The MACD is looking up as it moves into the upper part, which is bullish. MHO.
Back in '07 it was over $2 per share, so has a way to go to recover. The progress will depend alot of the underlying metal of course, so $18 Silver will help alot.
dsclosure: I own Scorpio Mining shares
And last but not least is a tiny spec play with emphasis on "Spec". Orex Minerals REX.V
Please note this is not Orex Exploration which is another company with another symbol..OX
This is a very early stage explorer in Mexico, that is mere pennies is is akin to a lottery ticket on precious metals in Mexico. It trades at .13 share and for a reason. It doesn't have anything yet. What it does have is a competent mgmt team....From Orko Silver, Gary Cope, Ben Whiting. From Goldcorp the previous head of geology, Art Freeze and the highly respected George Cavey, Past President of Canadian Professional GeoScientist Society.
They just announced beggining work on the Coneto mining camp which has identified at least 30 epithermal gold and silver vein structures at Coneto. It is a 400 year old mining camp that has not been drilled or explored since the 70's. At that time, there was some drilling done with results showing anywhere from 209 gpt to 365 gpt silver equivilant around the area, as thick as 3 .15 meters.
With all mini cap penny shares, there is alot of hype and promotion. This is typical, so you have to know the story and not depend on BB's for info. Call the Company direct. Next week, the mgmt team will be in Europe doing a road show and getting the story out with European investors. This is very early stage,
The stock is tightly held and and mgmt and institutions hold a large percentage of the shares. From a TA point of view, that is questionable, as tiny caps like REX.V are not good candidates for TA because of volume, share price, liquidity and length of history. What can be taken from charts and TA is that is based quite well during the summer around .09 and .10 and now is making a breaking out of that zone. RSI with a tiny cap of .13 share gets thrown around if it moves a penny, so is not a good indicator. The MACD does help if it moves above the zero line into bullish mode, because what that does is say the most recent prices ( the 12 dma) is higher than the lower end of the equation which is the 26 dma. MACD is really just 12 dma over 26 dma and shows which prices are dominating...older ones or the new prices.
LInk to the website of the Company.......
Disclosure: I own shares of REX.V