Charting penny mining stocks using the "so called technical analysis" is in a lot of case of little use. Being of no use meaning that for a lot of the penny miners their stocks is illquide, doesn't trade for days or volume is only dribbles of shares. A lot of these players can see their stock sit under 10 cents for most of a year or even more. Some are a mere 1 cents or even 1/2 a cent. Until the stock has a "find" and is being followed by a fund or a research team of some kind, T/A is really of no value.

Now getting back to the charts, as you can see by the chart images below, it would be extremely difficult to do any kind of T/A on these stocks.

Tagish Lake TLG above traded at 1 cent to 1.5 cents for the bulk of the year. Very hard to know if and when any action would start to take place.


Tanqueray Resources TQY above also traded in the 1 cent range for most of the year.


Even Canarc CCM-T which did have some rise in it's stock would be very difficult to use any sort of T/A.


Sage Gold SGXabove is an example of some stocks that were quite active in previous years but can find themselves in a slump like any of the rest. Looking below is a 5 year chart of Sage which shows that at one time you may have been able to do some kone of T/A.

When TA Can Be Applied

The real problem with trading these stocks with charts come into effect when there is news or results of some kind. Especially good positive news. As you can see with the following chart of Terrane Metals.

Terrane Metals TRX at the time of this writing has been approved for a go ahead of it Mt. Milligan mine in Northern BC. Even though drill results were good and favor full to the investor, not too many wanted to put money into the stocks because of the risk that a maybe the mine would not go. Of course as you can see once the new was let out about a big backer and an OK to go from government departments, some people who had bought the stock made fortunes. And I may add that more fortunes will be made with this play. In fact in June of 2009 we put this stock on our hot stock watch list because even though the stock was going nowhere, the writing was on the walls for some of us who KNEW that this would not stay in the 15-20 cent range for much longer. Turns out we were right on.