Chart courtesy of google finance
Not much to say really of the intraday chart. Lots of shares were traded in the morning which was of-course mainly due to the releasing of the drill results by Orko. Oh, we did manage to hit 0.86 on two occasions but unless we close above 0.84 I’m not considering this breaking the 0.84 resistance. More on that on the daily chart.
Pan American Silver confirmed Orko’s drill results by drilling at approximately 50 metre spacing in an area previously drilled by Orko at 100 metre spacing. So in getting this completed this will now form the basis of a geostatistical study toward ultimate reserve definition. The news release also states that a phase-II diamond drilling is underway.
Of importance from the release is the following :
In addition to the drilling, PAA has completed 57 trenches on regional exploration targets with the resultant collection of 557 samples. These results have encouraged PAA to commence drilling on the exploration targets such as El Vaquero, Nancy, Baritina, Baritina Norte (Martha North) and Orito Norte
To me as an investor this reads….’Plenty more news releases in the pipeline‘
Now this is a chart I like. Well, what do we have here.
Lots of action, we’ve made a new 3 day high today at 0.86. We still have the 3 week high for the week ending September 5th. We have a 3 month high in September.
Volume is still increasing as today saw a total of 552k shares traded.
The Relative Strength Index (RSI) is now getting in the overbought zone (above 70) but that shouldn’t necessarily mean that we are looking at a sell-off.
We do however have a tiny winy little gap. Again, it is not obligatory for a stock to close a gap before going further up but the possibility exists. If tomorrow the market decides to close the gap that means the stock will first go down to the high of the previous day which is 0.80.
One can never tell, if it drops however to 0.80 I expect a quick bounce up again to continue its advance towards breaking the 0.84 resistance. It still remains to be seen what sort of resistance still exists at 0.84 after the in my opinion very good news release by Orko Silver.
It wouldn’t however be all too bad for the stock to find the 0.80 again and start from there building more momentum to blast this 0.84 resistance to smithereens.
Orko is now mainly driven by investors like you and me and not all investors will have received the news release or will have been in the opportunity to get in or buy more. Maybe tomorrow the news release will have done its rounds around the junior investor communities and more people will decide to get in tomorrow.
As with all ventures, do your own diligence and you will do fine. Good luck to all.
YeOldGoldNugget’s links of interest
- Are You Laughing or Crying About Markets?
- Introducing the Perfect Portfolio
- What does winter hold for Crude Oil?
- Free Email Trading Course Copy
- New Video: ETF GLD is analyzed