Yeah, I was too lazy to do a chart yesterday. So go sue me 🙂
Saturdays just give me a bit more time and since the Toronto and the Venture Exchange are closed in the weekend we all have to wait until they open again. And since I’m no Forex trader that at-least means that weekends are still trading free.
On to the chart of the day,..I’ve decided to include some points of interest.
To continue with where I left of and as to why I consider Orko Silver’s chart so bullish. You’re looking at a daily chart with a 2 year time frame.
If you look at October 2007 till early may 2008 you will notice that there rests a considerable support at 1.40
I think this 1.40 will be important again in the -hopefully- not all too distant future. I’m just referencing this here now so one can already try to learn and remember some key-points this stock has known and will encounter again.
Also if you look at the chart you will see I have placed some markers highlighting the 200 Moving Average. Basically, a 200 Moving Average to investors means mostly just two things. Is the stock trading above the 200 Moving Average?
Yes) If this is the answer then the stock is considered to be in an uptrend and the market is accumulating and buying more shares than its selling.
No) If this is the answer then the stock is considered to be in a downtrend and the market is selling more than it is buying.
Now, knowing this, take a look at the chart and look at where we are now. That needs no further explanation I think.
Also, I have to correct an error in my earlier posting where I might have given the presumption that 0.90 is a next resistance to break. That is not what I meant, I meant that 0.90 is just a fictitious mental barrier the stock has to break,…in minds of investors I mean.
Resistance wise the 0.90 means absolutely NOTHING, the earlier spike to 0.90 was merely a failed attempt to get to 1.00 again and thus should not be seen as a resistance or barrier to cross.
The 1.00 mark however is!
In these bullish and up times and with this chart I’m guessing that the 1.00 will be more looked at as a support than it will be as a resistance to break. So that means that from where we are now at 0.87 and up to 1.00 there really is no clearly definable point to look at which could make or break the attempt to get to 1.00
What I mean is, the stock should have absolutely no problem getting over 1.00. Investors won’t be looking at any specific points between where we are now and up to 1.00 to decide on whether to sell. So to me as a researcher that means that the chances of people selling their shares now are together with the supporting and up-trending 200 MA indicator getting considerably slim.
That is also the emotional part I’m addressing here which plays a part in where we go from here and how fast we will get there.
Together with this supporting issue for the stock comes also another one.
These will be amongst the last days that one will have the opportunity to buy Orko Silver Corp. this cheaply cause once we break 1.00 this for one will act as a very very strong bottom and once past 1.00 we are quickly looking at the important 1.40 mark.
For next week, the basics have not changed, we’re still very much in an uptrend, a slight pullback (RSI >70) is still in the cards and when that happens don’t be that stupid to just sell your shares cheaply.
Stay true and prosper!
YeOldGoldNugget’s links of interest
- Seven market lessons guaranteed to improve your trading
- 5 Markets & 5 Ways To Improve Your Trading Profits In the coming years ahead
- 90 Second Gold Lesson (Video)