Short Term Trading Week Starting: 20 November, page-93

STTCOMP ENT, TA Long
Enterprise Metals Limited
Market Cap – $8.3M
SOI – 318M
Cash and cash equivalents - $177k (1/9/17)
Total Cash and liquid securities - $1269k (1/9/17)

ENT announced a SPP on 14 November, with the offered share price yet to be determined based on 15% discount to 5 days vwap on 12 December (entire fundamental basis of this stock is discussed in the FA tip separately)

Now let’s focus on technical side of the things.
Since ENT acquired Cue (Murchison) tenements in late October, price gradually reached 3c. However, after the SPP announcement in mid-November, share price dropped rapidly to 2.1 and then only moved sideways for a couple of days.
Stochastic now sits between 0-20, indicating oversold conditions. Williams show three consecutive green pillars sandwiching two grey pillars. Buy signal to confirm when the next grey box is created. Mass index crossed 27 on the upward direction and I would expect it to cross 27 again, possibly in a few weeks, confirming a strong price reversal for the medium term.

With the support of pitchfork medians and support levels, I’d expect minimum price target of 4.2c by 12^th December, as illustrated in below figure (forget about 3.8c tag in this chart, that will be explained in the next):


From fib support and resistance levels, I would expect a price target at 3.8 on average, in about 2 weeks’ time.


Previous resistance levels:

During June 2017, price moved quickly as follows (also shown in below chart):
3.3 -> Gap up to 3.9c -> peaked at 5.5c -> Gap down to 3.9c - > bottomed 2.3c.
Based on the significantly high volumes and critical price points, I recognise a resistance level at 3.9c, which supports both of my above price targets in the short term.


Note: all charts are 4 hourly.

As explained in the FA section, company will likely to through a few trump cards to raise the SP by December.

All IMHO. DYOR & GLTA