weekend charting march 18-20, page-34

Hi Mayo1975,

Here's my take on KZL for what it's worth.

I have drawn three pitchforks with the most recent Blue fork being the one you should focus on. Note how the price successfully tested and retested the support level described by the lower blue tyne at points A, B and C before a significant failure which saw price drop to point D where it found support from the 2nd Warning line of the longer-term navy pitchfork. Since then price has attempted to recover from that setback and has tested the lower blue tyne from below (now as resistance) at point E without success.

I see two options for price from this point:

The first is a continuing decline in price, given that on this occasion not even the 2nd Warning line of the longer-term navy pitchfork provided support as it did earlier.

The second is another upwards move approximating the path of the green arrow to again retest the lower blue tyne at somewhere around point F - hopefully this time successfully. This is the option I think will eventuate. I would be looking for early signs of upwards movement on increasing volumes as confirmation of this. Note that the Stochastic (set at 5,3,3 to exaggerate the effect on this chart) is also heading up and if the setting is changed to the conventional 15,3,3 it is still indicating the start of an upwards climb.

I know nothing about KZL, but the likelihood of an upwards movement from this point rather than a further decline, coupled with the distance/gain to be made in climbing back up to the blue median line (which price will always try to reach), makes it look very promising.

Good luck with this one. The current price looks to me to be a good entry level into KZL (following the confirmation I mentioned above of a change of direction), or a good opportunity to top up for those who already hold and have confidence.

Regards,
Bones