This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

6 Precious Metals Stocks Set to Explode

Stocks in this article: MGHNSUSLWNGEXKAXU

Nevsun Resources

Nevsun Resources (NSU) and its subsidiaries are in the mineral property exploration and development business in Africa. The company is mainly focused on its Bisha Mine in Eritrea, East Africa. I don't have to tell you that doing business in Africa is risky, but Nevsun seems to be on the right track with its Bisha Mine. The development is expected to produce more than 1.14 million ounces of gold, 11.9 million ounces of silver, 821 pounds of copper and over 1 billion pounds of zinc during its estimated 13-year mine life. This stock is off by around 16% so far in 2011 and their current market cap is $1.23 billion.

What I like about the chart for Nevsum is that shares are starting make a key technical breakout as the stock begins to trade above a descending trend line. This descending trend line started back in January and now the stock is breaking out above this resistance area on decent volume.

Related: Top-Rated Metals & Mining Stocks

I would be a buyer of this stock once it takes out some near-term overhead resistance at around $6.30 to $6.50 a share. I would then add again above $7.25 and add even more aggressively above $7.75 a share. That said, I would only add to these moves if the volume is increasing dramatically above the three-month average trading activity of around 809,800 shares.

I would like to point out that a move above $7.75 will be huge for the bulls because it will mean that the stock is trading at all-time highs. If that happens, I would look for NSU to make a run at the psychologically important $10 level.

3 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs