Energy Co. In a Great Place To Buy

Source: Clive Maund 02/20/2025

Technical Analyst Clive Maund explains why he thinks Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) is a Strong Buy.

Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) is a company dedicated to the acquisition, exploration and development of clean energy / fuel projects, specifically uranium. As we will proceed to see when we look at its charts, its stock is believed to be at the optimum entry point with the potential for very substantial percentage gains from here.

Although the company technically owns three properties, it is focused primarily on two advanced uranium projects in Canada’s most prospective uranium-rich jurisdictions, one being in Labrador’s Central Mineral Belt and the other being in the Athabasca Basin in Saskatchewan.

Azincourt has entered into an agreement to acquire a 100% interest in the Snegamook Uranium Project in Labrador, comprising 423 hectares, and it has an 87% interest in the 20,674 hectares East Preston Uranium Project in the Athabasca Basin. An overview of these properties is provided on this slide, which is lifted from the company’s latest investor presentation.

A key point to note is that the company’s two main properties are located in highly prospective regions and proximal to large scale uranium deposits and discoveries owned by some of the world’s largest mining companies as will become clear when we look at the maps on some of the following slides.

This slide shows the location and extent of the Snegamook Project and its proximity to a very large property owned by Atha Energy Corp, another uranium company.

The company is working towards its maiden drill program on the Snegamook Project as set out on this slide, and it is noteworthy that no exploration work has been undertaken there since 2008.

The company’s other main project, the East Preston Uranium Project, is located in the Athabasca Basin in northern Saskatchewan, which has the largest highest grade uranium deposits in the world, a fact which clearly bodes well for significant discoveries at East Preston.

The next slide provides an overview of the East Preston Uranium Project and on the map on it, we see that not only is the project substantial in area, but it is located very close to other major projects in the Athabasca Basin owned by big, important companies in the sector such as Cameco, Denison, Fission, NexGen and Skyharbor which means that there is a high probability of significant discoveries on the property.

The capitalization table shows that there is a high number of shares in issue at 374 million, so past stock dilution may account for the current low price of the stock to a considerable extent.

However, this also means that the large number of shares in issue has already been discounted by the market and factored in, and a positive point to note is that since half the stock is owned by institutions, insiders, and family and friends, the number of shares in the float is obviously reduced by this much.

After an exceptionally severe bear market that erased most of its value, Azincourt Energy Corp is at last in position to begin a major bull market that could result in spectacular percentage gains from the current low level and it will become apparent why this claim is no exaggeration as we proceed to examine its charts.

Now, we will look at the stock charts for Azincourt Energy to see exactly why its stock looks so outstandingly attractive here.

Starting with the 6-year chart we can see how Azincourt has been stuck in a persistent and destructive bear market from its early 2021 spike highs when it briefly attained a price of CA$0.45 and as it recently bottomed at about 1 cent this means that it has lost almost 98% of its value at its 2021 high and as it is currently priced at 1.5 cents it means that it is still very close to recent lows.

As it is still so close to its lows it is hard for many investors to understand the appeal of this stock here. Many suspect that it will either be delisted or remain moribund for months and perhaps even longer, and while this viewpoint is understandable after its recent history we will uncover the reasons why it could be on the verge of a substantial runup.

Returning to the chart, after the spike high of early 2021, a large triangular pattern developed, which turned out to be a top, which it broke down from in the Spring of 2022, leading to a severe but relatively short-lived decline. After this drop, the rate of decline slowed markedly, with the price drifting steadily lower in a grinding bear market that went on until late August last year when it finally hit bottom at about 1 cent. When we consider the measured nature of this long decline compared to the top pattern and heavy drop that preceded it and factor in that the Accumulation line has been trending higher and showing marked positive divergence since as far back as mid-2021, we start to appreciate the possibility and even the probability that we are at the tail end of a giant tilted Pan & Handle base.

The fact that the pattern is tilted “throws most observers off the scent” because they see that the stock is making new lows and write it off just for this reason, which is why, when the turn comes with these patterns, there is frequently a strong rally that leaves most investors behind. So, the sort of scenario that could evolve from here is shown on the chart as a projection, and while it should not be taken too literally, it is certainly possible from this position. If it does eventuate, buyers around the current price will be looking at very large percentage gains very quickly.

The psychology driving a valid Cup & Handle or Pan & Handle base is always the same. There is some development or some news that makes the most savvy investors realize that the company has “turned the corner” and is looking to better times ahead. This realization drives a spike in the stock price on heavy volume, after which a “hangover” sets in, as it takes time for the fundamentals to catch up with the drastically improved outlook, and this is why the price often settles into a lengthy “Handle” consolidation before the new bull market becomes established. The bottom line is that with these sorts of percentage gains in prospect, this looks like a great place to buy the stock.

The chart from the start of 2024 enables us to see recent action in much more detail, and on it, we can see how the bear market ended abruptly late last August, which is hardly surprising considering that it had become almost worthless by that time. Since hitting bottom, it has tracked sideways ever since in a narrow trading range whose duration has allowed time for the 200-day moving average to drop down into the trading range so that the price and the 50-day and 200-day moving averages are now tightly bunched together,r which is a setup that frequently precedes a reversal into a new bull market which, as mentioned above, is made a lot more likely by the ongoing strength of the Accumulation line which in addition to trending higher for years made new highs just a couple of weeks ago.

In light of all this, it is interesting to observe the noticeable volume buildup last month, which is thought to indicate that the stock is now powering up to break higher to run up quickly to complete the right side of the Pan of the Pan & Handle base which, as mentioned above, will result in large percentage gains from the current price quickly.

Azincourt Energy Corp is therefore rated an Immediate Strong Buy. The first target for the expected advance is CA$0.10. The second target is CA$0.15, and the third target on breakout from the giant base pattern is the CA$0.35 – CA$0.40 area.

Azincourt Energy Corp.’s website.

Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) closed for trading at CA$0.02, US$0.0099 on February 18, 2025

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Important Disclosures:

1. Azincourt Energy Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. For this article, the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
3. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Azincourt Energy Corp.
4. Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
5. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: AAZ:TSX.V; AZURF:OTC, )

Source: https://www.streetwisereports.com/article/2025/02/20/energy-co-in-a-great-place-to-buy.html