Analysis
First would be the long term structure. We see two lower highs which creates our resistance and a very good place for us to expect this uptrend to end/consolidate. I really don't see why we would expect a break out at this time and set a higher high. Since the target is in 2021ish I'll worry about that later.
Second is the shorter term wedge the price action is currently in. Very promising we didn't hit support the third time given what we see in the indicators. Both the MACD and RSI are showing hidden bullish divergence, (my favorite kind). I think we have a strong case for swing traders that we will break out the wedge. I feel given how poorly the price has done we would expect a retest of the wedge as support.
We are way below the volume profile lower value area which makes the very literal technical case that SLCA is undervalued. Since price action has a habit of dancing around the value areas I would expect we go to the lower value area, consolidate, move the point of control, consolidate, and ultimately move to the upper value area. Should the price action actually mount the upper value area and the long term trend line then we can look at going damn near vertical, but that will be a few years away.
The chart below shows that the Average True range is at 1.46, which is the lowest it has been, ever. I don't see many people use the ATR here but it is used to identify extreme lows in the market in general as well as lows in volatility as well. It is almost like a bollinger band without the noise for measuring volatility. A riskier way to use ATR as a leading indicator to call a top, which isn't what we are doing here.
Using the bollinger bands we see that we are against the weekly BB with all the bullish divergence mentioned above, with the ATR at a all time low. We also see the OBV has found a floor and is chopping sideways. Very likely the OBV and 10-20 EMAs will continue generally upward till they break through and find support on the 100 EMA, and after that a powerful move to the upside.
Fundamentals
Goldman is forecasting higher oil prices due to OPEC+ agreeing among themselves to cut supply more than analysis foretasted. If course, this tightening is occurring at a technically great time as the USOIL and UKOIL charts suggest.
www.bloomberg.com/ne...-cuts-tighten-market
Disclaimer
You are not suppose to be emotionally attached to stocks that you trade, and in the interest of full disclosure SLCA is one of those for me with my main disappointment that didn't let this winner run enough when I was less experienced. Right now I wish my entry were better, I was in a little higher up but I have been holding this dip. Not financial advice and I am not a financial adviser or certified market technician.
First would be the long term structure. We see two lower highs which creates our resistance and a very good place for us to expect this uptrend to end/consolidate. I really don't see why we would expect a break out at this time and set a higher high. Since the target is in 2021ish I'll worry about that later.
Second is the shorter term wedge the price action is currently in. Very promising we didn't hit support the third time given what we see in the indicators. Both the MACD and RSI are showing hidden bullish divergence, (my favorite kind). I think we have a strong case for swing traders that we will break out the wedge. I feel given how poorly the price has done we would expect a retest of the wedge as support.
We are way below the volume profile lower value area which makes the very literal technical case that SLCA is undervalued. Since price action has a habit of dancing around the value areas I would expect we go to the lower value area, consolidate, move the point of control, consolidate, and ultimately move to the upper value area. Should the price action actually mount the upper value area and the long term trend line then we can look at going damn near vertical, but that will be a few years away.
The chart below shows that the Average True range is at 1.46, which is the lowest it has been, ever. I don't see many people use the ATR here but it is used to identify extreme lows in the market in general as well as lows in volatility as well. It is almost like a bollinger band without the noise for measuring volatility. A riskier way to use ATR as a leading indicator to call a top, which isn't what we are doing here.
Fundamentals
Goldman is forecasting higher oil prices due to OPEC+ agreeing among themselves to cut supply more than analysis foretasted. If course, this tightening is occurring at a technically great time as the USOIL and UKOIL charts suggest.
www.bloomberg.com/ne...-cuts-tighten-market
Disclaimer
You are not suppose to be emotionally attached to stocks that you trade, and in the interest of full disclosure SLCA is one of those for me with my main disappointment that didn't let this winner run enough when I was less experienced. Right now I wish my entry were better, I was in a little higher up but I have been holding this dip. Not financial advice and I am not a financial adviser or certified market technician.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion