Well the end of the year has finally arrived and there should be no complaints about how the last 12 months has treated us.
There is every indication that the coming year will be just as good.
As we are starting a new year I will start a new charting thread now as was suggested a month or so ago.
With well over a million views on the old one it is time for a fresh start, plus it will be easier to look back in six months to see how things have changed on the charts as the company starts production
I would really like to see more discussion on the TA aspects of the charts in the charting threads in the coming year as we progress towards being a producer.
There will surely be some good trading opportunities that could be discussed as they arrive and the charts have given us advanced notice of them.
Well that is my belief anyway, others may have differing views.
There are still too many that want to jump in with the herd at the wrong time instead of leading the herd so any discussion about potential moves and their outcomes should be encouraged.
So this is how I see things atm in the charts.
Everything is very positive looking & I don’t see much downside risk other than some unforeseen world event.
All the charts seem to be in accord with their direction and outlook.
Monthly:
Positives: Dec . close has seen the sp. retesting the previous months high on slightly less volume than the previous month and closing at the higher end of the range. Always a good sign.
The last two months vol. was about two thirds of the big sell down so it looks as though there was no serious selling since that sell down and what was sold has been snapped up & held as one would expect given the fundamentals.
The sp is still tracking the long term trend up and should continue.
This time frame is very slow to show changes unless there is something drastic event.
Negatives: None
Weekly:
Positives: The sp continues to respect the trends and is rising with increasing volume as the sellers disappear.
This week we retested the resistance at $0.28 and have closed above the long term rising trend line for the first time in ten weeks.
The weeks high was the 50% fib return level. The previous resistance area has been the 38% line so this is a significant event.
The 61% line may be tested in the next week if the rising trend and higher swings continues.
The MACD is closing back to its mov avg (rising)
The stoch (5,3,3) is also closing back on the avg (rising)
These indicators are leading indicators & measure momentum & not price or volume so as the trend is up & rising these are showing that the momentum is growing after a period of sideways movement (accumulation) and currently slowing after the spike.
Negatives: The sp closed in the lower half of the weeks range so in the short term we may see the $0.245 to 0.25 tested again.
The sp looks to be in a congestion area of converging trend lines atm which may slow things down initially
Daily:
Positives: The sp has continued to trade between the two major trend lines while also testing the resistance at the 50% fib line. Support should now be at $0.245
The MACD continues its steady rise and after the volume finally dried up early in the week we had the very large volume day as the mm finally relented & let the sp rise.
This is possibly a signal that the accumulation phase is coming to an end and a rerating is starting.
The stoch is still bullish but is also returning to its avg which has not changed direction at all so the next pull back if it happens will probably not be much or last long.
The pull back Friday was a normal reaction to that rise & large volume buying (selling by the mm)
The sp closing in the top end of the days range & making a tail on the bar, this is all adding to the positive signs.
Negatives: Nothing really stands out.
There is still an unclosed inside day gap down at $0.235 but as time goes on there is less likelihood of it closing.
It does still have the potential to close in the next 10 days however.
The overall picture showing on the charts is very rosy and is a reflection of the underlying fundamentals but don’t expect to see the sp double in the first week of the new year.
I would expect to see a significant rerating happen in the near future followed by another period of consolidation while waiting for results from the stage 1 processing during the first quarter.
A rerating may only get the sp back to the previous high in the first instance however.
The next rally then should see the sp testing the 61% level around $0.29 to 0.30.
The trend lines may be indicating a test of that as early as next week..
A break above that level should then result in a return to the $0.355 high.
I hope everyone has a safe & pleasant & profitable 2018. I am looking forward to the next few months.
(20min delay)