Red Metal Limited (RDM) - Explorer for Australian Copper-Gold and base metals
Based in Sydney / Market cap $22.7m / Last price 13.5 / Cash on hand June 30 $1.8m
The chart shows the following characteristics:
- August 10th shows large volume (largest in 6 months) and price spike, following two previous days of volume and price increase. Stock on this day closes at 12.5 and just off high of 13
- The following few days the stock maintains price and volumes dip, like a Flag formation quite often does after a dominant white candle.
- The 16th of August is an interesting day and what I like to call a "bear trap" or "shakeout" - the stock is driven lower and on high volume shaking out any loose hands. The key is the following day whereby the stock opens higher, is driven higher and then closes on the high confirming in fact the previous day was a bear trap. Quite often these sequences prove to be a spring and the stock then proceeds higher.
What we can also see from the chart is almost a short term resistance of 13 in the last week and a half.
What to look for next? A move above the 13 level (and to hold) and on good volume. Friday's action started to show this.
