CEO Technician Robert Sinn on a Simple Approach to Technical Analysis for Junior Resorce Company Charts

Trevor Hall Hey, welcome to Mining Stock Daily. This is Trevor Hall. Thanks again for tuning in. Special thanks to our sponsor today. That's Integra Resources. Integra trades as ITR on the TSX Venture and IRRZF on the OTC markets. Today we welcome back to the show Robert Sinn, otherwise known as CEO Technician. And I asked Robert to come on board today to give us a little bit of the way he approaches technical analysis with the Junior Resource stocks. Rob, good to chat with you once again. How are you today?

Robert Sinn Hey, Trevor, thanks for having me back. Yeah, I think technical analysis is a really interesting and important topic in the Junior Mining Sector. I think a lot of people think, well, you can't use charts on these tiny market cap stocks. You can't--you know, it doesn't work. I often see that in chat forums and even bloggers will say the charts don't work, you know. And I think that just shows a lack of understanding of how to use charting and what charts are actually for. Charts are representation of price and volume action in the past. Nothing more, nothing less. It's not a crystal ball, and I think that's where some people go astray. They think, well, OK, I read this charting guy and he said that this pattern means that this has to happen. That's not true. That's a misinterpretation and misuse of technical analysis. It doesn't--technical analysis is not a crystal ball. It's not guaranteed to make forecasts that work--same way fundamental analysis is not. I don't know anything that is 100%, that works 100% of the time forecasting or even very much more than half the time, right? So, I think to really simplify it, so I don't get too carried away in this conversation. I want to go over a few key points of what I use technical analysis for and what I think that anybody could and perhaps should, you know, use it for in their process.

Trevor Hall Yeah. So, let's chat real quick, Rob. You know, and maybe in lay-person for people who are just kind of starting out investing in Junior Resources. What are some of the fundamentals that you would give advice to pay attention to when it comes to looking over a chart?

Robert Sinn Yeah, so the number one thing would be the trend. So, what's the trend of price? Has the price been going up? Has the price been going down? Very simple stuff. Or has a price been in a range? I think that's the number one thing that I look for. So, when somebody says to me, hey will you take a look at this stock, ZBT, and I pull it up, that's the first thing my brain sees as the trend. Then I look at volume. So maybe--has there been some unusual buying or some unusual volume in the recent past? Or maybe there has been some selling. Maybe some people are getting out of the stock. There's some high volume down days. So just to get you know, and that's why I say everybody who looks at a chart is using technical analysis. In a very simple way, they're a technician because they're looking at the chart and it is informing them of what the stock has been doing. And a lot of people might think, well, I'm not a technician, I just pulled up a chart to see what the price was. Well, you got a piece of information from the chart, so you're using technical analysis.

Trevor Hall When it comes to what the trends are doing; up, down or even just working in a range, Rob. Do you pay much attention to the 20, 50- or 200-day moving averages? And is that a helpful tool for you?

Robert Sinn The 50 day moving average, I believe is important, you know, indicator of trend. I have it on most of my charts and it doesn't. The level that it's at doesn't really mean a whole lot, but the slope of the line matters because it's telling me what the trend is in the stock. So, I do use, you know, moving averages. I don't. But a lot of weight in them. There's just very simply an indicator of trend.

Trevor Hall In this industry we see a lot of cat--well, not a lot of catalysts. There are few catalysts to really move a stock up, whether it be hitting a new discovery hole, maybe projects continuing to be further developed and built out. And so we'll see higher volume and higher share prices raise or gain on the floor. But what does a parabolic move up on a chart? What is that--is that a warning to you or is that a healthy move in your eyes?

Robert Sinn Well, the word parabolic is a pretty vague term. I mean, it could mean a lot of things. If a stock is exploding to the upside from a broad base on heavy volume, that could be talked about as a parabolic move, but that could be a very positive move that's just getting started. There's all different stuff. So now you're getting a little more granular. This is all the more advanced topic. It depends upon how overextended the move is. And that is the volume starting to show signs of fading? Are buyers starting to show signs that they're pulling back bids? So, you really you really have to look at it in the big context to understand whether a parabolic move is dangerously overdone and about to, you know, reverse to the downside or is the parabolic move actually the start of something much bigger? I actually want to mention a few key things. So technical analysis, I use it mainly in the Junior Mining Sector to avoid making big mistakes. So, what I mean by that is let's say that somebody is giving me a fundamental speech. Maybe the CEO was telling me why his company is so great. I pull up the chart. Nothing but selling, big downtrend. Does it match anything what he's saying? That's immediately a red flag to me that I need to I need to delve more into the fundamentals and not take what he's saying at face value. Also, a great example, over the summer, this company, Sun Metals, SUNM on the Venture, I was following their stock very closely. I traded it a little bit. There was a technical breakdown and SUNM a couple of months ago--so they're, you know, drilling right now at their Stardust project and the stock broke under $0.50 on pretty heavy volume. And that was a technical break--it actually broke $0.45, like that was the real breakdown. That was a warning sign to me that something wasn't going well with the drilling. SUNM is now $0.22. So, it's been more than cut in half since that technical breakdown. A bunch of news has come out and they're not hitting the high grades over the wide lengths that they were in the first few holes, right. And so the market was informing us through technical analysis what was actually going on when the news wasn't out yet in the market, the price and volume action was telling us what was happening. And I can give you so many examples of similar situations, not necessarily always in the bear side, sometimes on the positive side. A stock AMX at the end of 2018 was showing very strong signs of accumulation. And I was pointing this out in my lab daily. Something is going on here, something's going on. I don't know what's going on, but somebody is buying this stock relentlessly and it went from $0.12 to $0.50 at $0.20. AMX eventually hit $1.50 earlier this year, It's about a dollar something right now. But that was a really powerful example of how technical analysis can show us what's actually going on in the ground.

Trevor Hall Yeah, I am very familiar with the Sun Metals story and not so much the AMX story. But, you know, it's just a proven case of how chart analysis can be your own checks and balances on optimism in the market, Right. Especially when a company hits good high grades and all of a sudden the market expects more of that. But the company can't deliver thus far, right?

Robert Sinn Absolutely. And that's another thing I want to say. Charting and using T.A. can help us to better gauge the expectations of the market. And honestly, there could be nothing more important to understand than what the market is expecting. So that's another really good way to use charts--just to help to gauge. What's the market thinking here? Is the market being optimistic on this company or is it being pessimistic? And then that can help us have more context as we delve into the fundamentals.

Trevor Hall All right, Rob, well, that's all the time we have. Thank you so much for that insight. It was very powerful stuff. How can people reach out to you if they have further questions or like to follow the lab more?

Robert Sinn Oh, you can send me an email at CEOTechnician@gmail.com or my Twitter is @CEOTechnician.

Trevor Hall Thanks, Rob. Have yourself a great day. We'll chat again soon.

Robert Sinn Thank you.