Needless to say some very encouraging demand hitting the screens this week with two large crossings and plenty of off screen buying clearing out the 13c seller that has been persistent for the last few weeks. Based on the action this afternoon and the firm close at 14c they look to be pretty much done.
Daily setup:
Price action getting busy around the 200 day MA at 13c for most of the week with two closes and a new high to close out the week with today's candle. Strong volume to support this move which is always encouraging. MACD now firmly trending positive once more. Still some good room to move on the RSI before it enters 'overbought' territory as well, suggesting there's more left in this run yet.
Now the 200 day is set to become support as the price sits on the 14c neckline that has also proven to be support and resistance for the stock over a period of time. Once this is cleared (my guess is early next week) it will open the door for a run to the 17c - 20c range without much fuss.
Whilst the daily setup is more than encouraging, the weekly - medium term setup is what is most significant for the stock as of this week we have seen a clear change in trend since the stock broke down in September 2019.
Looking at the setup a strong green candle, closing on its highs and moving to the topside bollinger band off the back of the most significant volume traded on a weekly basis for a number of years. This also coinciding with the strong close above the 15w, 30w and 200w MA's, which will all start acting as support as this newly established trend continues to play out.
MACD trending nicely back to the important 0 control line, which once clearer should see a further surge in price action. Stochastics crossing positive and the RSI with plenty of room to move before 'over bought' signals are present.
Hard to argue with what the technical setup is showing here.
VAN Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
