current technicals, page-6

Here we go.

GDO has had a nice little run, and the next few days will be the telling point whether it can break up into the 40cent range. Why? Long story short, have a look at the bollinger bands on the below chart. Quite often GDO rejects the upper line and retraces after testing them.

Question is, will the stock follow historical trends or not...



If it does then it will drift back to the lower 30s from here, but if it defies these trends and breaks above 38cents, then there is actually very little resistance in the low to mid 40cent range. If this were to happen, then you would be looking at a breakout, then a backtest of 38cents before a move towards the higher area of the blue channel over the coming months in my opinion.

Now for a quick look at the indicators. Stochastics and MACD are short term bullish, however the money flow is diverging against price movement and this indicates that there might not be enough buying volume to support the move into the 40cent range as I discussed above.



The telling point over the next few days will be whether GDO can break and close above 38cents on high volume (4.5M+ imo). If it does then it looks good for next week, however if it can't do this then it looks like cooling off for a bit. Money flow will be pivotal so keep an eye on it.

By the way, this stock is still pretty high on my watchlist. I check in on it most weeks and see if anything new has happened. I might be joining you all at some stage, but right now I'm playing the field a bit with some other stocks.

Regards, 5hareholder :)