Even with the two week rally off the low of $0.041 to my first resistance target of $0.07 the amount of churn is a fraction of what i was expecting. I believe that the significant drop on the announcement date (27 Sep 2021) may have been the capitulation event i have been waiting for and dreading. The positive of this is that for those still holding, we could potentially see less churn as we move higher. That is, all those that were inclined to sell have done so. Buyers since the announcement, like the directors, are waiting for confirmation of the change in strategy.
Recent announcements made by other companies like Apollo, confirm that gold bearing dirt is starting to sell for a premium. I was reading an AFR article today (screenshot below) and it confirms that M & A activity has been staggering.
It wouldn't be out of the question to see increased transactions over the coming months as companies are cashed up and opportunities limited. It is also apparent that existing small explorers are reluctant to sell as seen by the rejections of bids, yet it would appear that the "for sale" sign is up and management willing to consider all options. Another positive for a large outfit to consider. Things move smoothly when management are on board.
Back to the chart, and as i suggested before, the pull back has been on extremely low volume. The Slow Stochastic is currently in the "turbo zone" where significant up thrusts in price can take place. The recovery has been significant, but should volume continue to be light, it is very possible to form a bull flag at these levels. Another attempt on the $0.07 could take place in the short term. The last two candles also are currently off the daily lows showing appetite to still buy at these prices. This translates into continued upward movement in the money flow.
The weekly suggests there may be some more juice in the tank and could see $0.075 hit but we'll need to wait for that.
BDC Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held
