There's a very nice-looking pennant forming on AYN. As you may...

There's a very nice-looking pennant forming on AYN. As you may know, the SP rarely continues to the right of a pennant's 'point'; it usually breaks one way or the other.

Is AYN's SP likely to break downwards? Hardly! Members of the the world-wide investing and trading 'commentariat' seem to think that silver is imminently poised for a decent run. With a first pour in the offing, a break upwards is, therefore, very much more than likely.

The stock is trading, too, just below the 30MA. Take a look at a chart for the solid climb above the 30MA on the 15th of September last year. Instructive!

The confluence of three events is close at hand:

1. a break from the pennant,
2. a climb above the 30MA (at around 4.2 cents), and
3. the first silver ingots.

If, as I suspect, they do indeed all properly come together, the buying pressure will be substantial.

One more thing - and it's again to do with breakouts, but for different reasons; there's a support and resistance 'trend channel' emerging on my Pro Trader software with a top at 5 cents. A first trade at 5.1 will constitute a break - always a buying signal.

There's an even better one at 5.6, which would be the highest level reached under the new 'Alcyone' arrangements. When the first 5.7 cents trade happens, the buying pressure will be this time more 'than substantial'; it'll be (as they say) 'every man for himself' as buyers - gazing into the limitless territory of 'blue sky' - scramble to climb on board.

But it won't, I think, be a heedless rabble scrambling. This is a company with a future. I'm not great at working the FA numbers (there are others who do that very well - charts and what the buyers and sellers are doing are my thing), but it seems obvious to me that a small Australian company on the cusp of profitably pouring silver in these risky and uncertain times has to be a pretty fair bet.
At present levels (4.1 cents), the downside risk is - I believe - very small. The forces are gathering for a rise.
I'm in!!


(Stops in place, always.)

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