Chart

Hi All

I was just revisiting some charting to get a feel on how we're tracking for some of my targets. A couple of interesting things going on at the moment. Below is the 3 year weekly chart which gives a smoother feel for the trends. I've added 3 moving averages (exponential) the 13, 50 and 200 week. Some chartists are critical of moving averages but I quite like them as I feel (and it is feel) that they provide indication of the movement of crowds. In this case short, medium and long term holders.

Anyway there's a pattern called the Golden Cross where the 50 and 200 moving averages cross over. It can presage a powerful move. On this chart I've highlighted such a cross, the inverted version, back in July 14 when the 50 crossed over the 200 on the way down confirming the dreadful down trend BSE endured through the trough of the commodities collapse. At that point it was battling to hold on to 30 cents, which it soon collapsed away from leading to the gap that I'm currently looking to close.

Looking to the current period, the weekly bars now look to be holding above 20 cents. That was a key zone back in late 2014 and holding it cleans out the bottom of the basin. Looking ahead we see that at the same time the weekly bars are now above the 200week ma which is bottoming and starting to rise AND the 50 week MA is rising towards the 200 week MA and will cross over it I estimate somewhere in the next couple of months. This will be the Golden Cross executing perfectly with both MAs rising and I am inclined to think it will be strong enough to run and test the 50 cent high on this chart.