Let me provide a pretty diagram and go on a little bit of a thoughtful prose here.
At the moment we have hit the lowest volume in months. The MACD is turning upward. There was a delay in the finalization of Adidi-Kanga. Delays are expected but share prices can decline as a result. There we are. But not only did VEC decline, but many other speculative gold plays that I've been watching. There are definitely cycles where the hot money moves in and out of sectors, and unfortunately it was moving out of these plays recently. However, I am seeing the cycle reverse and the money is coming back in and I think this is great news for VEC.
There may be >1.3B shares on issue, but at what price did people pay for them, and where are they willing to sell? Noone really wants to sell at these levels, and with good reason: a lot of people have bought in the 3c and up. The volume selling is a pittance now. Other than that, you have long termers and they are staying put with their holdings.
Recently I have been watching the trading daily for VEC and there appears to be accumulation occurring by the bots. But the offering of what they can buy in the morning auction and a pip or two up in the morning surely isn't going to be enough to satiate their appetite, especially not when there are announcements updating the market that everything is on track. When there were delays and doubt, the market was theirs to manipulate. But now the doubt has lessened and I think we are going to see them step up.
It wouldn't surprise me to see a few line wipes up in the next few days and back into the 3's. There isn't really that much volume required to get there, but once we start taking off, the volume will pile in. I'm looking forward to the next day where we are churning through a third of the SOI a lot higher than we are now.
Other than that, if I squint enough and throw in some lines here and there, I see a long term cup and handle in play. And if that's the case and you're looking to get in, I don't see that there will be much handle to hold onto soon.
VEC Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
