chart update

Hi all,

Given the action of goldies in the last week, here's an updated chart of GRY with some thoughts on the recent developments (refer to the original post on 12/5/12).

Following the downward breakdown of the weekly falling wedge, the price did test 50s but did not reach the lows previously identified as plausible. The weekly charts shows that the issue has essentially been confined to a trading range of 61-76 in the last four or so months.

What may be also of interest is that the churning of stock since May has been tied to markedly higher volume. Volume, obviously, depicts activity, and what that shows us is the activity has been relatively high within what looks like a key support level. Note that there has been no change in substantial holdings to dispose of the stock in that period (not filed anyway).

The daily chart shows that the stock has broken free (for now) from the 13-month old downtrend on roughly 3x the previous two weeks' average volume as depicted by the downward sloping pitchfork. You will notice that the usual "clustering" move towards the upper boundary of the trend channel was spectacularly crushed at 81c, after which the stock began to range. That this happened may well be a positive as the issue had time to form a basing pattern from which a sustained upward trend may emerge.

In summary, a decisive break of 78c on expanding volume may confirm that the downtrend has been broken, with the low on 13/7/12. For now, it looks like we have a double bottom formed by the action on 17/5 and 13/7 and a descending triangle 7/6 and 22/8 (best seen on the hourly chart), which has resolved to the upside this Thursday.