chartists, page-10

gmcg

I hope the chart below is helpful.

Explanations:

1. Daily bars are green if the Closing Price [CP] is equal to or greater than the Open Price [OP]. Otherwise, if OP>CP then bars are red.

2. The light black rectangular line is an overlaid swing chart [1 day] that shows the size of each rally / fall.

3. The dotted pink lines show the 2 Standard deviation Bollinger Bands.

4. The Stochastic Indicator just below the main chart is set at 50:30 [ie. SLOW] - my preference to show when stocks have traded for a month or so to become overbought [above top green line] or oversold [below the bottom green line]. The main line is in RED. If the dotted black line is also high or low that adds to how overbought / oversold the stock is.

Observations:

1. Following November's fall GOR traded in a small range throughout December & most of January - hence the bottleneck in the Bollinger Bands [pressure cooker]. A break up or down was brewing.

2. After rallying 6c to 37c in mid-Jan GOR fell back 4.5c. It then rallied from 32.5c to 44.5c, falling 4.5c thus far [note that the chart incorrectly shows 5.5c moves].

3. The rally exceeded the upper Bollinger band - not surpsingly - after a few strong days a breather was to be expected.

4. The 40c level is significant. A continuation of the rally from this point would be a very bullish signal, a fall below it would indicate a loss of momentum.

5. Based on my version of the Slow Stochastic indicator, GOR was not heavily oversold & the bearish cross could easily reverse.

6. The 1 day swing chart shows that the current trend is UP [successive higher Highs & higher Lows].