Just on gardening leave so I thought I'd use my valuable time wisely with this post.
Like many here I see massive potential with KRM. With mining stocks I must admit I know f-all when I start looking at the technical geophysics / drilling data. I'm grateful for the wealth of knowledge and clarity provided by others. The last couple of weeks seem to display an inexplicable lack of interest in this stock, when one looks at the trading data. I think however, that the technical data paints a bright picture, when one simply looks at moving averages and volatility.
In the chart below firstly we see that when the Bollinger Bands are at their lowest widths (meaning lowest volatility), the SP has followed after with large moves up, or down. In other words when stocks trade sideways within a more narrow price range for a period, the price then tends to react higher or lower soon after.
The vertical lines below helps to tell this story. So we are currently in a period of low volatility, after the large price movement up which started about a month ago. This 30% price (roughly) price increase from the lows in June, puts us now at a price range that has captured all the excitement of the geophysics and survey data. With the very low volume and with the price not going anywhere, it seems like long term buyers and short term traders have mostly run out of steam. The market knows that drill data is not far away so it would make sense that there is a holding pattern at the moment with price trading sideways.
Positively, the price is trending above the 50 and 200 moving averages. The 50 MA is also sloping upwards which suggests the bullish sentiment is still stronger than the bearish sentiment. 200 MA was slightly sloping upwards from about a month ago and is now quite flat, which suggests a more neutral price sentiment.
I expect volatility to continue to reduce in the next couple of weeks and I think this will also drag the SP slightly lower to about 6.2-6.3c as a support level. When we actually get drill data, this will drive the SP out of this period of low volatility, with large moves. The upside potential is very large but without actual results, mid trending with low volume is to be expected, with occasional short term support level tests above 6c. This is all just technical analysis and completely ignore the actual fundamental reality of this project. But, as a long term holder this analysis helps me avoid frustration with the SP not going anywhere. I know why I'm invested in this stock and I think that this is the best investment I've made since PLS. I'm here for the SP to reach $1 plus so I know I need to be patient and re-assure myself that the team and assets are first class.
(20min delay)
