TA Update
Great to see RLT enjoying some nice green days of late.
We all know there's been a lot going on in the back ground with progress on site facilities, the helium backed securities and what looks to be a successful trip to the States for our shot callers.
The anticipation of these catalysts is becoming apparent in the sp growth so lets take a look at whats been happening on the TA side of things.
Firstly lets take a look at natural gas prices as theres been some big moves in the last week.
This week saw the biggest single day move over the last 12mths with over 14% gained in a single day!
Unfortunately this was all but reversed in the next session with a 12% decline.
Then Fridays session saw a bounce off the 200dma and a dragonfly doji close - which is a strong sign of a bullish reversal.
If prices can get back above the 50dma (white) this would be very bullish for any near term moves.
Although we've witnessed a decent pullback from last years highs natural gas prices have climbed around 20% since Dec lows and over 70% in the last year, so it is still looking very positive.
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Moving over to SA and REN has started to make a strong case for the bulls.
Momentum indicators have swung back to positive.
The sp has broken above all MAs (bullish)
The last two trading sessions have also seen a break above the recent pennant formation and also broken back above its LT support.
Fridays movements looked to backtest old support and held (also positive)
If this support holds we should see some nice gains ahead...
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Now onto the ASX and RLT has obviously also seen some positive action of late.
As I mentioned in my post at Xmas the difference between pricing on exchanges was inconsequential as the volume was too low for any arbitrage opportunities.
Now that volume has returned the balance in pricing is also coming back.
Momentum indicators have turned bullish on RLT as you can see with the MACD and Stoch indicators below.
All MAs have also been cleared (bullish)
The breakout from its recent range has left a breakway gap and runaway gap.
Both of these gaps are less likely to fill than other gaps but I'd still like to see a catalyst to help the sp keep clear of these.
The flat corrective waves are certainly an interesting set up too.
If it were to play out then that would be very bullish indeed.
As you can see the C wave has failed to reach a lower low than wave A.
This can be a signal that the main trend is so strong that even the corrective waves get skewed to follow the trend.
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One of the positives of having Covid over Xmas was that it gave me some time to refine and backtest some trading systems and theres one in particular that has a lot of potential.
This system has just had another BUY trigger at $2.82...
Over the past year the system has had 9 triggers - 6 wins and 3 losses.
The biggest winning trade was over 42% gained
However the biggest run-up (gain before SELL was triggered) was over 114%!!!
In the same time the biggest losing trade was -8%
The biggest drawdown (drop before SELL signal triggered) was only 15%
As you can see its been quite profitable and quite consistent.
The current TA setup certainly has the scope to be one of the biggest gains for the open long if things play out.
*Note - I haven't sold any of my LT position, this system is more for adding to that position or making smaller trades.
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With the amount of positive catalysts due in the near future 2022 is certainly shaping up as a big year for RLT holders.
As I mentioned in my post at Xmas, I'm still expecting the sp to hit north of $5 in Q1
The sp is already up over 25% since then so lets see
AIMHO
DYOR
GLTAH
(20min delay)