Hello,
For this stock we have seen a recent break of a downward channel from 2016. volume confirms that this break is real and looks to be the reversal of a long downtrend. however the stock has gone up 500% since Aug 2019. Now the market will come back to test the breakout and potentially lower. shake out of weak hands/fomo buyers etc.
from the analysis we have been stopped at the 50fib and at resistance high from early 2016, it also coincides with a 1.27 extension from that 2016 resistance. RSI is very high showing it is overbought and this has been on a tear since mid 2019.
I marked a big accumulation zone however I don't believe we will break below the 61.8 at .095 (52% drop in price from here). I will start to accumulate some between .125 and .095. this channel that we broke will now be strong support, it coincides with 50%&61.8% retracements of this leg and the daily 50 moving average is there too - so it is a very strong support area. If we do not hold that area we can see a retest of the lows at .02 (but I am doubtful of this low)
I put the upside targets in the medium term in yellow
Lots of these small miners have broken out but the market will give us a chance if we are patient to buy them lower. I have posted other charts sharing that the gold price/silver is looking to pull back. The big cap miners already showed a pull back and that is usually indicative of a drop in the spot prices of gold/silver.
I will be posting several charts on small cap miners and I plan to trade them during the next two years, it should be an amazing time for gold and silver and the miners which should see spectacular gains.
Thankyou
For this stock we have seen a recent break of a downward channel from 2016. volume confirms that this break is real and looks to be the reversal of a long downtrend. however the stock has gone up 500% since Aug 2019. Now the market will come back to test the breakout and potentially lower. shake out of weak hands/fomo buyers etc.
from the analysis we have been stopped at the 50fib and at resistance high from early 2016, it also coincides with a 1.27 extension from that 2016 resistance. RSI is very high showing it is overbought and this has been on a tear since mid 2019.
I marked a big accumulation zone however I don't believe we will break below the 61.8 at .095 (52% drop in price from here). I will start to accumulate some between .125 and .095. this channel that we broke will now be strong support, it coincides with 50%&61.8% retracements of this leg and the daily 50 moving average is there too - so it is a very strong support area. If we do not hold that area we can see a retest of the lows at .02 (but I am doubtful of this low)
I put the upside targets in the medium term in yellow
Lots of these small miners have broken out but the market will give us a chance if we are patient to buy them lower. I have posted other charts sharing that the gold price/silver is looking to pull back. The big cap miners already showed a pull back and that is usually indicative of a drop in the spot prices of gold/silver.
I will be posting several charts on small cap miners and I plan to trade them during the next two years, it should be an amazing time for gold and silver and the miners which should see spectacular gains.
Thankyou