ADN CHART, page-3198

Didn't get a chance over the weekend to post a wrap up of the week, busy with the fam.

Was out of the office on Friday, however had a couple of lower bids in the screen for ADN on the hope the interest on market on Thursday might shake out on Friday as the broader market got smoked! I was quite encouraged with the overall strength of ADN on Friday to close out the week, however Iam certainly expecting higher volatility across the board for the next few weeks yet.

Here's the daily chart showing Friday's price action -
Closed above the 15 & 30 day MA, with the MACD now trending back to the 0 control line. If the price action can sustain this push from Thursday and continue to close above 4.8c we will see the 15 day MA (red line) turn up into the price action and cross the 30 day MA. This will see the downtrend the share price has been in since the feasibility study well and truly behind us and open the door for the next leg higher to take place with a push into the next Fibonacci retracement zone of 5.1c - 5.6c


Weekly setup -
A little more interesting here as we can see the share price has been spending time consolidating between the 15 week & 30 week MA and has thankfully held the 30week MA support which comes in at 4.56c.

Whilst we can see the stochastics are oversold (and can stay that way for a little while yet), MACD is still trending lower with a negative cross. IMO we need to continue to see the 30day MA hold otherwise we are at risk of seeing a move back to the 3.5c - 4c region. If the price action can give us a weekly close above the 15w MA which is currently at 5c this will start to bring the MACD much closer together to drive for a positive cross / trend change and signal that higher prices are to be expected once more.