I think time is approaching for this consolidation to resolve itself. Tomboy will come back soon.
Monday saw a large -4.39% gap down which easily sliced through the 22 EMA and caused panic.
But when I look at it, it feels suspiciously like a bullish shakeout that occurred-a panic fall before resuming up. And notice how the weakness didn't go down far enough to fill the gap down to $18.02 from 13th January. Got down to $18.08, so close, but didn't fill it. That is a bullish sign and shows the sell off was a fake.
A few conditions: 1. Monday's gap down needs to be fully filled all the way to $19.08. Price cannot fall short of filling to $19.08. Otherwise, it's bearish, 2. The price needs to hold in the $19.00's and finally show strength, 3. If this is the rally that is due, then $17.20 cannot be broken. If broken, then it's $16.00's then the rally, 4. We need to be mostly trading above the 22 EMA line. We will be back trading above the 22 EMA tomorrow as can be seen by FSUGY in the USA tonight, 5. We need a nice green +4% day to get things underway.
The resistance line (Fig. 1) shows $20 by the end of next week.
Even if point 3. happens, I still stand by my prediction of $23.08 for FMG inside of 6 months or less.
Another important feature and observation is the weekly RSI (Fig.2). Even the price action from weekly candles has a down slope, the RSI has a slight upslope. A rarity in a case like this. And looks like RSI is ready to pounce through the 50 level.
BHP (ASX) chart also looking very ripe for an uptrend. Resource stocks looking good to buy. Sell banks, go resources. Rotation.
Good luck to holders.
FMG Price at posting:
$18.62 Sentiment: Buy Disclosure: Held
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