In today’s edition of the Daily Stock Report, we are going to highlight Sandstorm Gold Ltd (SSL.TO). Sandstorm Gold shares have exhibited positive moves in relative strength as the shares started the year in the Red Unfavored Zone of the SIA S&P/TSX Composite Index report but migrated their way up the Yellow Neutral Zone in the report in early February signalling it was a name to keep an eye on. Very shortly thereafter the SIA Platform subsequently issued a Green Favored Zone signal back on February 12, 2025, at a price of $9.40. Since then, the shares have continued to strengthen further as the closing price is now at $12.99 which represents a 38% increase since its entry in the favored zone approximately six months ago. Currently the shares reside in the #17th spot of the favored zone of the SIA S&P/TSX Composite Index report. This exemplifies the example of staying in investments in the green favored zone and reinforces SIA’s methodology of finding and staying with the winners which exhibit strong relative strength as many market participants are looking at the name. In looking at the candlestick chart we see the shares found a floor at the $5.50 area in February of 2024, and a slow grinding recovery began with first a leg higher in the spring of 2024 towards another sideways consolidation range between $7.00 on the lower end and $8.50 at the top end between the May 2024 to Jan 2025 time period. Then the shares gained additional strength with a strong upleg transpiring from that point on until it reached its peak at just under the $14.00 level. The shares are now showing some signs of exhaustion after such a strong move of late as you can see the candlestick in the first week of July where you have a long upper shadow and long lower shadow of equal size form with a small body near equal opening and closing prices as well as the spike in volume during this weekly candle. It suggests that both buyers and sellers attempted to control price movement during the weekly session, but neither gained a clear advantage, resulting in a neutral market sentiment. It will be interesting to see going forward what the next move will be for the shares as we are at an important inflection point. A point and figure chart may give us insight on where potential support lies if the trend reverses should the sellers take over control.
Let’s dive in and see what the Point and Figure Chart looks like today. Point and figure charting excels in trend identification by offering a clear view of price movements and trend reversals. SSL.TO looks to have formed a rather orderly move upwards with a steady pattern of higher highs and higher lows since February of this year with the uptrend still intact today. The shares are right at its upcoming support level at the 3 box reversal point of $12.71. This will be important to watch as the first line of defense. Next support below that will be the $12.21 level which was prior resistance as prior resistance can act as a new support level going forward, hence another price point one may want keep an eye on otherwise this may indicate a trend reversal. To the upside, should the market indecision resolve itself in favour of the bulls, then $14.03 will be resistance. With a SMAX score of 9 out of 10, SSL.TO is exhibiting very strong near term strength against the asset classes and also exhibits a bullish double top Pattern.
NOTE:
Sandstorm Gold Ltd. has announced that the Company has entered into a definitive arrangement agreement with Royal Gold Inc , pursuant to which Royal Gold will acquire all of the issued and outstanding common shares of Sandstorm (the “Sandstorm Shares”) in an all-share transaction. Sandstorm Gold Ltd provides financing to companies engaged in gold mining through gold stream and royalty. Geographically, the company has operational footprints in North America, South & Central America, Africa, and Asia & Australia. The firm's royalties include Hod Maden, Santa Elena, Chapada, and Cerro Moro.
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