$ALK - ALKANE RESOURCES - Broken through resistance on news

ALKANE RESOURCES - Broken through resistance on news

On Friday it had a good run and closed up near its daily high after breaking through a previous resistance area. Has some good market depth in the order queue and looks like some additional volume (ie interest) coming through as well. Gold stocks could also become more interesting depending on how the economy keeps going. Looks like it could be worth a watch.

Company Announcement 29th March 2019

• Significant Gold Intercepts Confirm Potential for Tomingley Extension - 50,000 metres of Drilling Initiated
  
• Broad, shallow high grade gold intercepts 3 to 4 kilometres south of Tomingley Gold Operations demonstrate potential for material project life extension and flag potential return to open pit mining.
  
• RC and diamond core drilling results received for the San Antonio prospect demonstrated significant high grade gold zones.
  
• Results compare favourably with those that became part of the Tomingley Gold Operations open pits.
  
• RC drilling has confirmed significant gold mineralisation at San Antonio over a strike length of 800 metres and Roswell of 350 metres. The prospects are open along strike and down dip and an additional 3,000 metres of drilling is in progress to test the 300 metre untested strike between them.
  
• Resource definition drilling at the San Antonio and Roswell prospects will commence as soon as practical and is expected to comprise of ~50,000 metres of predominantly RC drilling.
  

About Alkane Resources

Alkane Resources Limited is involved in mineral exploration and evaluation, development and extraction. The Company focuses on its projects at Tomingley and Dubbo in New South Wales (NSW). It operates through two segments: gold operations and rare metals. Its Dubbo Zirconia Project is based on a resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements, located at Toongi, approximately 30 kilometers south of the regional center of Duddo. Its Tomingley Gold Operations are located over 50 kilometers south-west of Dubbo in the Central West of NSW. Its Northern Molong Belt Porphyry Project consists of three exploration licenses, such as EL4022-Bodangora, EL6209-Kaiser and EL8261-Finns Crossing. Its Finns Crossing is located immediately to the north-west of the Bodangora exploration license. Its Kaiser covers approximately 127 hectors and is enclosed by the Bodangora license. Its Orange East Project is located approximately 15 kilometers east-south-east of Orange.

My Indicator Entry Rules (needs to meet all):

- Price > EMA(9) (Trending up short term)
- EMA(9) > EMA(21) (Trending up short to medium term)
- Volume > Volume(30) (Others have become more interested in the stock)
- RSI(14) > 50 but < 80 (Has momentum but not overbought yet)
- OBV > EMA (30, OBV) (Volume is accelerating)
- ADX(14) > 25 (Strong momentum in the trend direction)

My Just Before I Buy Rules:

- Check all or most indicators are pointing up to confirm their direction
- Wait for price to move up > 2% (Headed in the right direction today)
- I'll check market depth to ensure lots of buyers and sellers at close price points to ensure demand and liquidity (ie I can get out quickly if I need to)
- I'll check for any company announcements to see whats driving the volume

My Indicator Warnings:

- RSI(14) < 40 (Interest falling)
- RSI(14) > 80 (Very overbought territory - may reverse)
- OBV < EMA (30, OBV) (Volume falling away, people losing interest at this price)

My Sell Rules:

- Trailing Stop at 1.5 to 2 x ATR (Depends how aggressive I want to be - means trend has ended for now)

OR if

- EMA(9) < EMA (21) (Trend has failed for now)

Comment:

Pushing 80 cents again. Big run from $27 cents where we first posted.