CAP chart, page-12

Weekly chart (top): there were mild divergences between price peaks and the RSI during the recent pullback (price peaks higher but RSI peaks lower). Also with Elder Force (volume proxy). Have tried to show these divergence areas with arrows.

Since those divergences prices have pulled back (as expected with a divergence) to the 3 week EMA (green line) and seem to be holding there for now. Buying volume is still strong although it is decreasing a bit (Elder Force). RSI is at 72 (overbought is 80) and decreasing as well.

MACD though (momentum) is still quite strong to the upside, and the 3 EMA is currently riding the top bollinger band (area shaded in orange). It's running quite hot when it does that, and prices pulling back to the 3 EMA also indicate a pretty strong trend.

Daily chart (lower): momentum (MACD) has run out a bit here as has volume (Elder Force). Both are pretty flat. RSI support at 56 holding for now, and it's currently attempting to nose above the downtrend line. Prices have settled nicely back in to the 13 day EMA (lighter blue line).


Looks like things are taking a breather for the moment with not much volume or momentum in the daily. Prices settled at the 13 day EMA/ 3 week EMA levels.

There is quite a bit of strength in these charts but the downward pointing RSI and Elder Force are something to watch. It may pull back more based on that. Also the RSI downtrend line in the daily indicate that it may not finished with the pullback yet. If it pulls back again the next support will be at about 10c.

If it does break back to the upside though I would think the weekly channel line at about 16c would be a good initial target, followed by the daily bollinger at about 19.5c, then the daily channel line at about 21c.