Daily
Positives.
Stoch 5 rising & still below the oversold line
Stoch 14 rising & above 50
Histogram is rising & is above zero
MACD rising & above the sig line
Closed above the top of the flag
Negatives
Failed to follow through on the initial breakout
Stoch 14 is at the overbought line
Open gap at 8.3 – 8.4
Outlook
At first glance it looks like we have a breakout underway & the chart is bullish
The failure to convincingly breakout of the flag with large & increasing volume on the last three bars raises my doubts about this being the real deal & may in fact be just the MM using their clout to hold up proceedings a while longer by selling into the resistance area.
The daily chart does look primed though for the long awaited rerate however & my system has multiple alerts indicating a higher high than the prev close so will run with that, but I am mindful of the open gap below & the Stochastics nearing the overbought area.
Near term resistance is the rising (grey) trend line around 0.094, Once that is broken then the next area s/t resistance starts around 0.098 - 0.10
Despite the many indications of a continuation I expect to see a retest of the down trending (red) line. The potential to close that gap remains very high at this time in the continuing absence of any funding deal.
Weekly
Positives
Closed above down trending resistance line which forms the top of the flag
Closed at the high end of the weekly range
Volume was nearly twice the prev weeks
Stoch 5 is rising & in the bullish zone above 50
MAC is above the sig line & rising
Histogram is above zero & rising
Negatives
Very few TA wise.
The Stoch 5 has widened from its avg line & is nearly at the overbought line
Outlook
Very positive looking weekly chart & has generated numerous signals indicating a high probability that the rise will continue in the short term at least.
I expect that there will be retesting of the break of that resistance/flag line before the rally /rerate continues.
IMO we are very near a S/T resistance at 0.094 – 0.095.
The next significant resistance then is 0.105.
An funding ann. would more than likely see the near term resistance levels broken quickly & the sp move up to around the 12 – 13 level.
Weekly support may now become 0.085 – 0.09 which is the down trend line dating back to Aug 2019 & failing that back down at 0.083 – 0.084
A funding deal is reqd. to keep momentum going but the Global X breaking out may drag us along for the ride in the S/T
AGY Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
