Wano what does that line going through the middle of your chart...

Wano what does that line going through the middle of your chart represent? Also how do you get support at 50c? Is that because thats where the last consolidation period was?

A few of my veiws on that. If you look back at all of the previous break outs by SLR, not one of them has found support on its previousl consolidation, so I wonder why you think this will be the case now?

This is my veiw of SLR chart. Its broken out of its ascending channel that its been in purely by demand for this stock with an increasing POG. The chances of this retracing to 55c are pretty good IMO. The chances of this retracing to 50c are very very slim - unless of course there is a major crash in the POG. You can also see the recent flag patterns as well which co-incide with the channel. You must consider IMO that these are text book continuation patterns - volume dropped off through the whole pattern in the right places and accelerated on the break out. I think we are now in another flag pattern and the bottom of the new channel (the top of the old one) will be the catalyst to break this out for the next leg up.

My reasons are that SLR would have to fall back down into its previous channel that it worked so hard to break out of. What your saying Wano is that this is a false break out of a channel if you want it back at 50c. It broke out of its channel on good volume and I suspect it will stay in this new trading range somewhere between 55c and 70c.

Having said that as rule there are far more false breakouts to the upside than to the downside on ascending channels. But in this instance, we all know the reasons why SLR has broken out into a steeper climb - ripper fundamentals and a bullish gold price. I would be very worried about selling out of this stock right now. Its only just starting to really get noticed.

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