ALK 4.00% 48.0¢ alkane resources limited

I for one, am prone to exiting a good trade early and I've vowed...

  1. 348 Posts.
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    I for one, am prone to exiting a good trade early and I've vowed to learn from this and keep my nerve which can be very difficult if you're in a multi-bagger. I thought I would be pulling the trigger at around the 66c level but there has not been any sign of a sell signal, I believe all the selling so far has been from fear of lost profits, not the market reaching equilibrium.

    so what am I looking for? I'm looking for euphoric conditions, normally characterized by a blow-off top (volume spike with an exuberant price rise, overbought indicators)
    Normally, daily 15% gains would be considered euphoric, but with slightly declining volume and multiple 10+% days, this has become the norm. The fact that we've never had a price/volume breakout like this before, you would expect the indicators to reach new all-time overbought conditions before reaching equilibrium.

    Some observations I've made:

    -50 and 200DMAs are nowhere near maximum divergence compared to that in 2011
    -Daily RSI is trending and nowhere near all-time highs

    https://hotcopper.com.au/data/attachments/1733/1733475-04459a935f14d37b4a54381170b101ba.jpg
    https://hotcopper.com.au/data/attachments/1733/1733467-8e40500e22fe9e07f8e8a67b5b8996ad.jpg

    -Weekly 50/200WMA golden cross has only just occurred

    https://hotcopper.com.au/data/attachments/1733/1733469-486181d4f56d523282e40655bf09ee73.jpg

    -Monthly MAs are flat
    -Monthly RSI has heaps of headroom

    https://hotcopper.com.au/data/attachments/1733/1733471-6ff8066e617f7df868033da325d7c331.jpg

    -Weekly RSI is well above MAs, 50 has only just crossed 200 (compare that to 2011)

    https://hotcopper.com.au/data/attachments/1733/1733478-c9fef578961aa8e48d34fc94a9f13fc5.jpg

    -Relative to XAUUSD, the Australian majors are still improving/lagging, it's most likely the POG will have another leg up (the majors usually drag the minors into leading, but ALK is already there)

    https://hotcopper.com.au/data/attachments/1733/1733483-ca33224c1b9cc715f3625fe9527e4cf0.jpg

    Moral of the story is, I'm holding.
 
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Last
48.0¢
Change
-0.020(4.00%)
Mkt cap ! $289.6M
Open High Low Value Volume
50.0¢ 50.8¢ 47.5¢ $1.265M 2.583M

Buyers (Bids)

No. Vol. Price($)
5 33546 47.5¢
 

Sellers (Offers)

Price($) Vol. No.
48.0¢ 1321 1
View Market Depth
Last trade - 16.10pm 26/07/2024 (20 minute delay) ?
ALK (ASX) Chart
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