Great to see SUM closed at a weekly high of 25.5c
So what's happening? Looks like the accumulation zone that SUM has been in from 12/08 this month to today, between 20c and 24.5c/25c has been broken through and with Volume. (Can see the Accumulation Box drawn on the Chart image I've posted below).
A week of low volume trades that saw the price bounce in this accumulation zone/channel and today the breakout with not just increase volume but a strong rise in the share price.
More than that, it broke through multiple Moving Averages; with the stock for the week hovering around the 9-EMA/13-EMA and 25-MA (seen where the lines go across the main body of the candles on the Daily Chart) with the 25-MA today sitting percetly under today's bullish candle.
Even more importantly the 50-MA was broken through today, can see the yellow line dipped down and is being pierced by today's bullish candle, with the 9 and 13-EMA also moving up, bunching together and coming to the 50-MA.
As I mentioned on another post, the 50-MA is one of the most bullish (and bearish signals) and the last time SUM was above the 50-MA was in July, but that was when the price was falling and formed a downtrend; can see where the candles all then moved below the 50-MA (yellow line).
Today is significant in that the move above the 50-MA is a very bullish signal to a change from a downtrend and into an uptrend, helped by the month and a half of a sideways movement.
The 200-MA (white line at the bottom) has also shown strength, with the candles/share price bouncing off this in that early August dip with the Japan trade market scare, then recovering when the panic was over.
MACD has concurrently been trending sideways in the same timeframe of the accumulation channel and has recently cross up between the 2/9 and 3/9 when another volume increase day occured, the share price pierced the 50-MA but wasn't ready to break through it like it did today and it back-tested for the two days after to 21.5 but found no more supply, with very low volumes over those two days.
Resulting in today having the breakout confirmed with price movement and volume.
Personally I loaded up at the 17c through to 23c and accumulated quietly myself, let go of some trading parcels but otherwise holding through for drill permits, trenching works and then future results and works to come! Having played this level for circa 17-years, you have to take a position early when the market cap is low and very low shares on issue in the right commodity and then let the drilling do the talking!
Next target is to breakthrough 27c which it failed to do on 16/8 and 19/8 those two days in a row, but that was also when the 50-MA was well above the share price and it was going to struggle to achieve such a height without significantly positive news.
Compared to today where the 50-MA is now below the candle/share price and has given the clear path ahead.
Targets:
24c - resistance broken today which was acting as a sticking point for the last week or so.
27c - break of the most recent major level would be great to see and should be easier now that the 50-MA is below the share price.
29c-30c - Top of the 50-MA curve and a general mental figure that most are drawn to, once this is broken that will clear the path through as that mental barrier will be cleared for investors and traders alike.
35.5c-36c - Top of the 25-MA curve and a previous level that failed to hold; will see a lot of supply come through here but the market cap of SUM will still only be $29.5m-MC which is ridiculously low still; there's other stocks with rock chip samples and less at these valuations.
SUM have noted the bulk sampling program is completed and have mentioned a few times how preparation is ongoing with permits for drilling and trenching expected to be granted soon, the focus will be on the newly acquired North Equador lease that has the Mining License as part of it.
In country manager Sandro is in Japan for the Niobium-Tantalum symposium representing Alex Stewart (as noted on his LinkedIn) and that could certainly spark some interest from new investors too.
Upcoming catalysts:
Drill Permits
Trenching Works
Bulk Sampling Results
Lidar Results
Have a great weekend everyone!
Daily Chart Below
Weekly Chart Below
(20min delay)