We last reported on Dundee Precious Metal Inc. (DPM.TO) on March 28, 2024, when the shares had just completed a quadruple top breakout and were challenging resistance at $10.50, setting up for a technical price objective between $11.55 and $12.25.
This was occurring while the shares were re-entering the Favored Green Zone in many of our Canadian equity reports. Attached is its position chart from the S&P TSX Capped Composite Index Report. Fast forward to today, and we find ourselves at the resistance level of $12.19, based on yesterday’s close.
DPM.TO continues to exhibit strong relative strength against its peer group, maintaining a perfect SMAX score (a near-term 1 to 90-day indicator comparing an asset against various equal-weight asset classes) of 10 out of 10. The attached candlestick chart provides an intermediate snapshot of DPM.TO shares. The channel range of $5 to $8 from 2020 to 2022 was challenged in early 2023 when the shares broke into a new channel range of $8 to $10.
In March, the breakout from this range contributed to further gains for investors, with the shares now sitting at +45.27% YTD and +17.36% over the last three months.
The candlestick chart also highlights key support levels (in green) at $11, $10, and finally $8, under a significant turn of events.
Finally, a review of this 2% scaled point and figure chart shows the breakout occurring at exactly $10.41, followed by an upward movement to the vertical count resistance at $12.20. Another 6-box vertical count indicates the next resistance at $13.20, which could establish a new range ($10.21-$13.30) for this habitual channel trader. New purchases are best made on the 3-box reversal support at $11.05 or the solid support level now appearing at $10.21 (previously old resistance). Other important support levels to note would be $9.43 and $9.06 under duress conditions.
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