Breaking Out: This Chile-focused ASX silver stock is on the climb, in search of rare air

Breaking Out is our new, technical analysis-fuelled, short ‘n’ sharp info bite, which each week narrows in on a rising ASX stock. One that’s specifically caught the expert eye of Stockhead contributor Steve Collette – head of Collette Capital in Melbourne.

The code ASL now belongs to Andean Silver (ASX:ASL) and the company is making good use of the ticker.

Andean has a fine, progressive chart with a host of clear support and target levels.

Further enhancing its appeal is the reality that there just aren’t that many significant silver exposures on the ASX outside of South32 (ASX:S32), Adriatic Metals (ASX:ADT), and Silver Mines (ASX:SVL).

Gold continues to make new highs with a stunning lack of fanfare, and so it is tough to imagine things getting too ugly for silver should that continue.

Andean completed a $10.5m raise at the start of May at 45c, so it probably won’t be tapping the market for further funds short term.

The stock has been on an uptrend this calendar year and has run from 20c to a touch over $1 during that period.

Recent weakness down to 60c in early August was well supported and the company had quickly re-established prints in the 80s by the end of last week.

A hold of 80c would be optimal short term.

Yet, given how progressive the macro backdrop appears to be for silver the commodity at present, exposures can be sized to risk down to 60c – with the obvious first target being the 100c that it spent some time above in mid-July.

Collette Capital offers IMA services to wholesale clients only. Learn more at www.collette.capital

Collette Capital is a Corporate Authorised Representative (CAR: 128443) of Sanlam Private Wealth (AFSL 337927), and only provides general advice.

Collette Capital advise that they and persons associated with them may have an interest in the above securities.

The views, information, or opinions expressed in the interviews in this article are solely those of the contributing author and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.