I thought it might be an opportune time to remind ourselves of the charting post from a week or so ago where i suggested that the intermediate resistance points were $0.06 and $0.07, with the latter being where we would most probably see some profit taking and churn. This has since come to pass and we are seeing low levels of churn (low volume) with any pip drop being bought up. I was thinking that the capitulation event where the $0.041 low was hit could have flushed out any of those considering an exit and I continue to think this. Many holders may acknowledge that the near term prospects will see either an outright takeover or a sale of the gold assets, leaving BDC as a shell with the manganese asset. Any way you look at it, there is decent coin to be made.
Looking at possible short to medium term movements we have the following charts
Using the Fibonacci retracement, we can see that the near term retracement level of 23.6% ($0.063) was touched before moving back higher on positive buying. It will be interesting to see if trading remains in this region. Pricing action over the last week is showing higher lows which suggests we could see another touch of the $0.07 level.
The second chart is a Fibonacci Extension and suggests that, again assuming that the near term low is $0.062, the next target is $0.08 which by chance is the historic level of resistance that was encountered in May 2021.
