Compania de Minas Buenaventura (BVN) is Peru’s largest diversified precious metals miner. They do everything from  mining and processing to development and exploration of gold, silver and other metals via wholly-owned mines, as well as through its participation in joint exploration projects.

As gold starts to recover, getting into undervalued mining and gold stocks is a good bet.

BVN shares have been beat up all year, but going into fall they have a history of doing very well, and right on cue have turned around from their steep decline and started to advance up the top of their Keltner channel. We could very well see the entire slide of the first half of the year reversed in this rally.  Another bullish sign is that the 21-day moving average for BVN has crossed above the 50-day moving average. Generally, that indicates an established uptrend. The consensus price target for BVN is $16.40, but I’ll be slightly more conservative in my target.

Recommendation: Buy BVN at current levels for a $16.20 target.

Jon Markman operates the investment firm Markman Capital Insights. He also writes a daily trading newsletter, Trader’s Advantage, and CounterPoint Options, a service geared towards helping individual traders make steady, consistent profits with the VIX. . Check out his Top Stock for 2012 here.

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