Let’s summarise this weeks trading whilst sharing my view on two postsas well.
“Is the AZS SP getting ahead of itself before first assays results –up a lot this week?”& “Was interested in AZS. However, it has run a lot at the moment”.
Below is the weekly chart which shows a break-out from an ascendingtriangle. With the SP reaching close to the end of the ascending triangle, I’mnot surprised to see the price surge upwards on anticipation of the assay results.At of the start of the trading week, the SP was 44.5c and has closed at 58.5c…is 14c in one week a lot even after receiving an update on drilling (ann: 31stMay) and approaching further announcements? Just to put into context, the SP ofa Mid Cap Stock like Pilbara Minerals have increased by $1 in a week. Withoutlooking at brokerage data, this week’s volume could be an accumulation ofinvestors, large investment firms and traders who have seen the chart set upand are aware of the announcements in the pipeline.
Jeebumba – From my trading experience, trend lines are reliable if andwhen they have three or more touches. Your first chart (price closing outsideBB), the blue trend line technically only has one touch at this stage (which isthe first candle, not yesterdays). Same principle with MACD. Momentumdivergence, I agree we will either see a breakout or a retrace from here.
As recentposters have stated, Charts do not consider ‘upcoming announcements that canchange the fundamentals of the company’. If we receive a game-changingannouncement, most (if not all) technicals are thrown out the window. Although Idon’t like to see these parabolic rises, see below ZLD for illustration (i am not cross-promoting, i don't even hold ZLD).
Another example is LKE Resources – if you were to sell because the SP entered ‘overbought territory’ on the RSI, you would’ve missed 95% gain based on looking at one technical analysis indicator (I am not cross-promoting, just sharing the opinion that fundamentals outweigh charts).
So what I’m saying is, i genuinely think this is the best I’ve seen AZS on the charts and I’m not surprised to see this week’s closing action. As Jeebumba mentioned, 59-60.5c is historical the next resistance as seen below. Based on Wednesday and yesterday’s volume, I wouldn’t be surprised to see AZS break into 60s before a retrace OR retrace from here before re-attempting. If it took the MD 12 months before announcing they have discovered lithium pegamites, because he wanted to ensure it’s the “real deal”, then why shouldn’t I think someone already knows the assay results we are waiting for in the next 2 weeks… hence the share price action as of late.
Again, this is all speculation and my own view – so do make your investment decisions based on my comments. I’m just happy to see shareholders finally being rewarded some way or another after stagnating in the 20s-30s for 12 months.
GLTA!
(20min delay)