Today’s price action was negative technically, and I’m not referring to the 5% plunge.
It’s plausible that Monday’s surge may have been related to a single buyer (perhaps institutional) placing orders across multiple small and micro cap gold stocks. I noticed for example after the close, that PRX and AQX surged with no news too.
Should that have been the case, this bounce is well and truly over as sellers re-emerge to push us back to the 100 day moving average at 42 cents.
Tomorrow’s price action will be telling. Should Azure be unable to hold above its opening price (suggesting sellers are in control like they were today) I will swiftly change my sentiment to Sell as the next target will be 42 cents (the 100 day moving average.)
The regular pumpers should jump on this comment, and whine about how I have no credibility as only yesterday I changed my sentiment to Buy.
But welcome to Azure - the most volatile stock of 2021! For context, it’s now down about 12% from the high of 64 cents hit yesterday.
Yet this is where technical analysis shines: things can go from good to bad notoriously fast, but if used correctly, it will at least allow you to be forewarned.
The only thing the regular uprampers will tell you (based on “fundamentals” which has no meaning in the context of a junior explorer with zero production, and unlikely to have any production for years if at all) is how great Azure will be soon. And they’ve been singing that tune since the beginning of time. Time to move on.
If Azure has any good news, they better be damn sure to deliver it soon else the market will punish this stock once again.
Note as always, that none of what I say here should ever be construed as financial advice. Always DYOR prior to investing.
