This was posted by the chartist last night, the video commentry wont work in here
Predictive Discovery (PDI)
BOTTOM LINE
11/3:
Daily Trend:Up
Weekly Trend:Up
Monthly Trend:Up
Support Levels: $0.145
Resistance Levels: $0.275 – $0.295
Calendar Events:
Report Date: April 24 2024 (estimate & quarterly) Ex-Div Date: T.B.A
VIDEO ANALYSIS
TECHNICAL DISCUSSION
Reasons to be bullish (cautious short term):
→ There is still the potential for more significant discoveries.
→ Management has a strategy to increase the Bankan resource and develop it into a mine.
→ The company has an experienced board and management team.
→ Political stability remains a concern.
→ A continuation pattern appears to be in its latter stages.
Over the past couple of weeks, gold has been heading higher following a healthy consolidation above the psychological $2000 an ounce level. Not surprisingly, gold miners here in Australia have been mostly following suit. PDI here hasn’t been the best performer in the sector by any stretch of the imagination, but it has upside potential. It is a lower-cap stock which makes for a choppy and messy-looking daily chart (not shown). Wide-ranging bars and gaps are commonplace which isn’t ideal from a pattern perspective. It results in a lack of clarity. We’ll take out some of that noise by continuing to focus on the weekly timeframe.
The first thing to note here is that the leg higher that commenced in early 2020 was about as potent as it gets. The end result was a gain of over 7600 % (that’s not a misprint). Those sorts of numbers aren’t sustainable, so it doesn’t come as a big surprise that a retracement has been underway since January 2022. Having said that, off the November 2022 lows, a rally has been unfolding. It isn’t pretty, with overlapping wave structures continuing to dominate. However, we are viewing the pause over the past couple of years or so in a positive light. Ideally, it’s going to set the stage for the strong prior uptrend to reignite with attitude. We aren’t quite there yet, but the risk remains to the upside, even if strength remains sporadic.
We’ve been watching a cup & handle on this chart over the past few months. It continues to progress well, with buyers stepping up in the nick of time a couple of weeks ago. It should be in its latter stages but remember we are looking at the weekly timeframe here. It’s not going to complete any time soon. It should take several weeks as a minimum but it could run into several months before it is locked in. A continuation up to the significant high made in early 2022 should be followed by a sideways move to complete the handle. A comprehensive push up through $0.30 in a move that sticks would suggest the prior uptrend is ready to reignite sooner than anticipated. Possible, but it isn’t our highest expectation.
TRADING STRATEGY
We currently have exposure to gold through WGX which continues to be a standout performer in the sector. Not that we are refraining from putting forward more recommendations in the gold space. However, there’s still no reason to want to be involved here despite there being upside potential over the coming weeks. There are stocks showing better patterns so we’ll be keeping an eye on those for low-risk entries.
(20min delay)
