I am no chartist, as I have said before, however there do appear...

I am no chartist, as I have said before, however there do appear to be indications that the sp has stablised in that it is nowhere near as volatile and yet the sp is relatively high considering the recent past.

The Exponential Moving Averages appear to have crossed so that the long term averages are being crossed by the shorter EMAs. This occurance will push up the longer term trends in turn, which encourages entry by those who may be uncertain.

Another factor is the volatility, which is measured by many people as a 'Bollinger Curve'. As I understand, the wider the gap the greater the measured volatility. The Bollinger Curve indicates a narrowing at present. This suggests that there is a strong probability that the sp volatility is likely to increase. The hestiation as such of the past few months seems to be giving way as more funds are comming to investments and people are emerging from hybernation as it were (although in the Nth hemiphere they are literally moving from an extreme winter into spring, which is always encouraging).


Charts are not crystal-balls, as they record data collected over periods based upon buying and selling, volatility and volumes. Nothing can be predicted, but trends are trends. Fundamentals of course are at the root of it all, but so is investor sentiment (largely based upon sound research).

All in my humble opinion, but that is all I have to offer.

To answer the why(?) question; well the announcements are positive, the management is stable, funding is under control, the diversity of projects are interrelated (but separate entities) and the charts are saying buy. One other factor of course is the fact that we are in the early stages of a continuing resource boom and we are also dealing with markets that are evolving rapidly. AIMHO.