East Asia Minerals (EAS.V) Bounces off Support on AMDAL Approval

East Asia Minerals
09/09/2020

East Asia Minerals (EAS.V) has been one of our favourite junior miners to follow over on our Discord Trading Channel. What caught my attention was firstly the chart set up. The technical pattern is what I have used to call major moves in Gold, Silver, GDX, GDXJ, Impact Silver, Pure Gold Mining and others. You can read about my initial thoughts on the chart here, but to quickly summarize: after a downtrend, we had a LONG range/basing/consolidation pattern. The breakout was our trigger, and East Asia Minerals did shoot up 79% after the we confirmed this breakout with a daily candle close above resistance.

It is common for price to pullback and retest the breakout zone. Price usually does this, or will spike and continue higher with a lot of momentum, before eventually pulling back to retest…this is an important thing to note as it gives us some insights on US equities needing to pullback to retest previous breakout zones, and even Gold and Silver. However, in this case, momentum gave us a higher low swing without retesting the breakout zone. After our move, and hitting the 0.25 resistance zone, price fell back to retest our key support zone.

As you can see, price then did remain at our support zone of 0.11-0.125 for over two weeks. As long as we held this zone, the uptrend was still intact from a technical viewpoint. And then it happened.

East Asia stock was halted and re-opened with news of the approval of the AMDAL environmental permit for Sangihe:

(After) a meeting of North Sulawesi government and community representatives was held on September 2, 2020, and the Company received notice of the approval of the AMDAL environmental report (AMDAL) for Sangihe. In furtherance of the issuance of the final permit, the Company is now attending to the preparation and submission of the necessary filings to complete the process.  The Company expects the permit will be issued in the next few days. EAMC will immediately apply for an upgrade of the licence to 30-year operation production status.

This was one of the major catalysts that we have been waiting for. The stock jumped and bounced off of our support zone. Going forward, this support zone remains key for us, and we should be expecting price to take out the 0.25 level going forward.

The price of Gold might be dampening the move for the time being. Gold is still at 1944, but many are still expecting another pullback, or leg lower before an eventual rise to new highs. We will have to watch this going forward. My followers know that I do believe there will be one more pullback based on a reversal pattern on the US Dollar.

For those that are new to the East Asia Minerals story, and want more of a fundamental and geology information, I suggest that you should read Greg Nolan’s articles on the company. His recent article talks about this AMDAL approval and what to expect from the company going forward.

 

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