Wow. What a difference a couple of days make. On Wednesday we stated, “The technical action in Seafield is looking increasingly bullish.” A chart can speak volumes. Sure enough, Seafield powered higher Thursday and Friday. Friday’s strong close on heavy volume (the stock closed above its opening price Friday which was a gap-up from the previous day) suggests Monday and next week could be very interesting.
Seafield’s short-term moving averages have reversed and turned positive. On Wednesday, this stock was nearly as oversold (based on stochastics and the RSI) as it was in July, just before it tripled in value from 5 cents to 15 cents. We believe the next triple is now underway with Seafield which will take it to its all-time highs (around 40 cents) before more consolidation followed by another dramatic move early in the New Year.
From a technical standpoint, Seafield is showing incredible strength and bullishness. This is a stock that wants to go a lot higher, in our view, and for some very sound fundamental reasons:
1. The company has positioned itself, through an option with privately-held Caribbean Copper and Gold Corporation (CCGC), to become a major gold exploration player in Colombia with substantial land packages and four million inferred ounces at the Quinchia Gold Project;
2. Big-money investors, led we believe by former Yorkton Securities President Scott Paterson, have lined up behind Seafield. Using a baseball analogy, Paterson is not interested in a cheap single or a double. He and his partners are in for a grand slam (this is their Ventana);
3. The company has a highly prospective silver-gold property in Mexico (Picachos) which it is likely to re-acquire 100% control of;
4. The company holds the very promising Elora Gold Property near Dryden, Ontario, where drilling has intersected numerous mineralized zones including half an ounce over 21 feet.
We’re speculating, based on its announced push into Colombia and its relationship with CCGC, that Seafield must be eyeing strategic land packages near Ventana or Greystar to complement the Quinchia Project. We are in the process of completing a major report on Seafield which will soon be posted on this site.
