Hi Ralph,
Yes, I'm here, sitting in the garden counting my stacks of
Canmine shares instead of bread and honey.
I use a different set of graphs with slightly different parameters. Doesn't make much difference, really. the MacD
is sitting on the centre line. The fast and slow lines are
cemented. If there is a break upward from the centre, then we should see a strong uptrend. However, there is nothing
to indicate which way the price will break.
The support/resistance line seems to be 68 cents. I've not
got it down to penny because the electronic charts I'm using
haven't got that sort of definition. 68 is better than the
previous support at 45. Hopefully, it will hold.
The RSI is weak. Small moves up, small moves down. It's
currently in a downtrend.
The OBV, interestingly enough, has held rather well. It is
off its high, not surprising given the number of days where
there has been a price fall of a penny or a few pennies.
That volume all gets subtracted from the total. More sellers
hitting the bids than buyers hitting the asks. No great
volume though. The OBV dropped then flattened out. The
stock is largely getting traded back and forth with no
real conviction on either side. I'd watch for an increase
in OBV that is greater than the increase in price so that
the OBV runs ahead of the price. If you don't follow TA
you might look at a chart of G.A for an example
of what I mean. Its OBV chart os exceptional and a clear
signal of prices that will rise.
The stock price really isn't trending but rather is range
bound and the range is very narrow. There isn't enough
volume or enough range to make it a trading stock. Sounds
terribly Canadian. Meanwhile tech stocks are running up and
down at 13.00 a share per day or 9.00 or 6.00.
The charts reflect quiet accurately the fact that there isn't any great reason to buy or sell. There's a very good book on gold mining, The Gold Book, that has a chart on
p. 134 called "Life Cycle of a Mining Share". Everyone
who speculates, invests in mining stocks should memorize
it. It relates price to three things over time: discover,
development, production. Put DMM against it. Fits perfectly.
Put copper mines, cobalt mines, nickle mines, etc. and
you'll see that they all fit the diagram. I'm sorry that
I don't have the ability to post the diagram. The book is
available from Penguin. |
