Today’s session brought an end to the 9 days consecutive up streak for the price of Orko Silver Corp.
It was a close call however since only a few minutes before closing we still had a climb to 0.89 but it didn’t hold and we closed at 0.87 (-1.14%).
Chart-wise I’m still looking at a bullish stock movement. No change there.
There is still decent volume. MACD indicator tells me the trend is still the same, going up. RSI and slow stochastic are turning down.
What are stochastics? Stochastics like RSI tries to help in showing when a stock is oversold or overbought. Again, don’t use this indicator on its own cause it needs the backup of other indicators to get the full picture.
The combination of slow stochastics and a divergence can however lead to profitable trades.
Readings below the 20 line are considered oversold, above 80 overbought.
Also remember, if I say the trend is up, that does not mean that a stock can’t close in the red. A stock can close in the red for more days than one and still be in an uptrend. If that sounds confusing to first-time investors don’t worry, it’ll start to make sense.
This comment however will sound funny to those that do understand such trivial of issues but not all of us are in similar stages of experience.
And my comments are not to be taken merely at face value, if you are a trader eager to learn I expect of you to open Bing or Google or Yahoo or whatever and look up MACD, RSI, Stochastics, Volume, Bollinger Bands,…and try and see what variations there are, what combination’s, look into the divergence part, what combination of technical points are good trade signals, good entries, good exits,…
So, continuing with the chart, hard to tell now what the stock will do tomorrow. A close in the red or in the green?
When I don’t know I throw in a bit more indicators.
Its starting to look like the stock is starting to move away from the upper band and starting to move to the center/middle line. However, its too early days to tell whether we have started the consolidation, just something to keep an eye on.
Worst case scenario, if we get a consolidation we will return to 0.80 before going up again. More likely and judging from the still undervalued price of Orko I’d see a downside of at lowest 0.85. Another day in the red wouldn’t be all that bad for the stock.
We’ll see what tomorrow brings.
I’m still long and holding! Hope you are too. Good fortune.
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)