I thought id have another look at the charts - just for my own benefit, but happy to put my thoughts into the mix...
Heres the chart:
Heres my thoughts FWIW:
Fundamentally - We know we are expecting an announcement ( BOA's), sometime from 6 weeks ago, through till 6 weeks time ( april 2021). This is expected to have a significant SP impact, as it *should* show $$ per tonne ( primarily) which lets us do our sale price analysis.
it should also provide detail around timing and conditions of sale ( obviously the non commercially sensitive ones)
The company has an 18 month lead on its competitors (and a larger and higher quality resource). Transport corridors are established and negotiated.
As the value of the resource becomes apparent to the wider market, and ergo the profitability and free cashflow of VRX is established, there will be significant demand for shareholding due to expected dividend streams ( note: i don't expect this to actually happen, as i now believe the company will be taken over long before dividends flow - JUST IMHO)
Technically - we have been consolidating side wise, bouncing off support at 30 - 31.5, on falling volumes ( and we historically, as a lot of stocks do - tend to bounce off our 55dayMA when in an uptrend)
The RSI ( not shown here) has turned positive and is moving up through 50% ( from oversold) which is generally a good indicator. MFI my prefered indicator is more strongly showing a bounce from oversold.
The MACD looks as though its about to cross to the upside ( its certainly setting up nicely)
VRX0 - have been trading at a premium above the expected time premium - forecasting positive sentiment for 31 July share price
Summary (IMHO) I am not a chartists backside my technical analysis is subject to confirmation bias
That said - I think we are ready for a move, - Everything says its to the upside.
A rough target is 42c, based on the flag height ( although its really a failed flag anyway).
42c represents a recent historical high where 20 million shares ( 4% SOI, IIRC) changed hands, After that its all blue sky.
So IMHO 42c in the near term ( Aprilish) and probable overshoot into the 60c around June, Watch out for some depression of the share price as holders sell heads to convert options in june( ish) and possible retrace into the 50's, before clearing the options overhang and moving to 80c - $1 into the new year. They are forward looking statements but that is my opinion ( DYOR).
Apo!
VRX Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
