After our nice little run up from 4.0c to 6.9c, the SP seems to...

After our nice little run up from 4.0c to 6.9c, the SP seems to be taking a breather.

On the daily chart we have gone from an oversold to an overbought position and we are seeing some profit taking ATM. This is normal & healthy IMO.

On the weekly chart the indicators are still rising (i.e. not yet overbought IMO) and so IMO there is potential for further gains in the weeks ahead.

On the monthly chart below the action is looking even better IMO. A large white candle has clearly risen above the previous small red bodied candle (the all time low on a closing basis) signalling a bullish turnaround. The long term declining resistance (latest fan line) has also been broken.

Also interesting to note is that there were 85 buyers in the queue vs 35 sellers at last count (earlier today). This is by no means a proxy for future movements or sentiment, but encouraging nonetheless.

Conclusion: IMO there is no justification at this time for more than a mild short term correction, even after our solid run up.

Cheers and very best regards,
Elpha

Please note: my opinion and analysis are mine only and in no way am I offering advice of any kind. Please DYOR.