Here you go Marcell. RSG just for you.
Interesting timing. I guess you had a hint of how the chart might appear.
This is my take.
It is a very good sign that the stock is following the trend up, rather than following the down trend component.
This is a classic consolidation set up.
The primary trend is DOWN i.e. it has been in place longer than the rising trend.
Exit price is $1 therefore how I would trade this is any dips below $1 are a good buy price.
Target price is $1.34 but there are 2 caveats.
How much momentum is spent breaking the down trend may see a buy generated before hitting the target price (a reset).
Most stocks where a target is set while the trend is predominantly down rarely hit targets before generating a new buy and may continue the down trend.
There is still potential for the stock failing to break out and trend down again.
Price should continue following the trend up and given gold price moves this is most likely.
A possibility is the stock will trade sideways as it exits the pattern.
Least likely is confirmation of the down trend though is will create resistance.
The previous consolidation is apparent. This was quite a nasty and protracted consolidation. This is typical of stocks that get too far from trend.
It went sideways when exiting the previous consolidation pattern except it was following the trend down while the predominant trend was up.
There was a false breakout (yellow 9) which did not detach from the down trend.
The exit price was 95c (highlighted bar is half the distance between the 2 trends) which it hit only once before exiting (yellow C)
It then generated a buy right on trend then proceeded to run up 100%.
I really like the current pattern and would be looking for an opportunity to buy. The only concern for me would be if a buy was generated BEFORE breaking the down trend. A bearish signal. Note the red lower low generated BELOW the uptrend (under the yellow 2).
There is limited upside available with this stock. I do already own it and probably take the target price if it happens.
This set up is typical of a lot of juniors that have since broken out with some on a tear.
The next few weeks will be interesting.
Believe it or not, there was a trend bounce on my long term chart at 62c so a bottom could have been picked for this stock in the capitulation sell-off. Can be seen on the 2nd chart. Always difficult to catch falling knives unless you have an identified trend or method to calculate a bottom.
I missed this one though I identified the end of the capitulation sell-off. The exit price on both charts is almost identical. The target price coincides with resistance on this chart. I MUST refer to this chart more often. It identified a top in DCN at $1.61 (resistance) before a trading halt and collapse. Cost me heaps.
A buy signal was generated at 82c on the 22/4/20 on the short term chart. It has since broken out so short term is in an uptrend. This is the 3rd chart.
Pretty cool for a 100 year old trading methodology.
The medium term (trading) chart. Bottom of highlighted is exit price at 95c.
Long term chart. Cursor shows resistance.
And the short term chart. Buy signal obvious.
