Insiders Love This Gold Explorer That Could Be Ripe For A Rally
Permitting challenges caused shares of Sabina Gold & Silver (SBB.TO) to tumble lower in June. However, savvy mining investors will have noticed that Sabina insiders have had a voracious appetite for SBB shares in recent weeks with insiders acquiring nearly 1,000,000 shares on the open market at prices ranging from C$1.24-C$1.37. Sabina Director Walter Segsworth has purchased nearly $150,000 of SBB stock in the open market in just the last month.
The insider purchases are notable on their own, however, moving to the chart we can see some significant technical developments:
Since the June crash SBB has made a series of higher lows while experiencing significant accumulation in the last couple of months. Meanwhile the C$1.40 level has continued to represent resistance; the shallower pullbacks and quicker moves up to test the C$1.40 level means that a breakout above C$1.40 which could lead to a gap fill at C$1.73 could be imminent.
SBB deserves a closer look with strong insider buying, a solid chart setup, and potential for a quick ~25% rally to fill the June gap. Short term traders could use C$1.24 as a downside stop loss reference point.
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