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Chart wise many gold stocks closed on a high yesterday with some conviction. NCM on reasonable volume above the 200ma with ma's turning up... NST, MML also putting in good showings.
My interest is in downtrends being broken and potential chart formations. So here is BDR which is perhaps the most slaughtered gold stock on the ASX (?) which shows tentative signs of breaking the down trend line it's been in for months... just popped over it on close - maybe not convincing enough yet... volume and a green bar required
MML is also one putting in an interesting formation. A cup and handle formation looks clearer on MML, however similar patterns forming on many other goldies. A cup and handle pattern is usually found at the end of a downtrend and results in a breakaway gap on large volume... Maybe something over the weekend may help this occur for Monday???
Either way - the interesting thing is moving averages, volume weighted moving averages are starting to or already have turned up. Weekly indicators, Monthly and many daily suggest oversold. On NCM we see some bullish alignments already in place.
Today will likely be another day on low volume, so do we have nerves to hold over the weekend ??
