I really like what i see in regards to the technicals of Icon...

I really like what i see in regards to the technicals of Icon resources.



The daily chart is looking very bullish IMHO. The stock has just completed a nice pullback to the 61.8% fib level.

This Fib level also coincides with an up trending support line and a horizontal support line thereby creating a confluence of support at around the 13 cent level.

In addition to the technical picture, the stock is trading below the recent placement price of 15 cents. This recent placement and the fact that the recent extremely strong run up took the share price into overbought conditions has resulted in the pullback. Momentum indicators are now oversold with the stochastics looking to cross back up.

A look at the long term weekly chart adds to the bullish technicals for the stock.



Check out the basing pattern which has absorbed the steep falls of 07/08. The chart shows that there was very strong resistance at around 13 cents, once broken this level should become support.

The break out of the basing pattern resulted in the stock rallying to a high of 22.5cents.
Due to the strength of the rally (6 cents to 22.5 cents without a pullback) the stock became overbought and just didnt have the energy to break above some key resistance levels to the upside, namely the down trending long term weekly resistance line and the resistance zone at 20-25 cents.

Whats really positive is that the stock has come back and supported on the previous strong resistance, which is now strong support at 13 cents. In doing so previously overbought conditions have been alleviated, and Icon now has the required momentum to stage a break out above these levels on the next up leg.

A look at a couple of repeating ranges gives a target of 33 cents at completion of the range.

I just really cant fault the technicals at all on this stock and therefore feel that it is a great buy at current levels with limited down side risk.
Volume analysis is suggesting that this is nothing more than a normal correction. Check out the massive volume to the upside and the low volume pullback.

Buy depth is very strong; a break of 15 cents should get things cranking up nicely. This is a very hard stock to get a hold of once it starts moving so take advantage of the current weakness as i dont think it will last.

Tungsten sector is still very much under the radar and thats exactly when you want to be buying it.

Watch this space.