Well we closed in the red that’s for sure! The action of the day brought us a low of 0.90 which you can see on the chart is where the Moving Average 10 line runs. This means that if we cross that line that means the stock will go below the average of the last 10 trading days which is definitely not a bullish sign.
But coupled with that negative, the stock to me is still considered to be in an uptrend until we get another down day and a move beneath that 10 MA, beneath 0.90 then I mean.
So then, what are we looking at for tomorrow. Well, I see the volume is decreasing since today only saw 178K shares changing hands, going down from earlier days which saw volumes of 250K and more. Is that bad? Hmm, hard to say, doesn’t have to be really.
Even with all the indicators in the red (see 1st chart) I’m still looking at a stock in a strong uptrend. So based on that I seem to end up with conflicting indicators. You see, it could very well be that just tapping beneath the 10 MA and crossing the 70 RSI line was sufficient enough to give this stock a breather and that we might close in the green tomorrow.
Today with the close in the red it should have been a confirmation of the Doji and the consolidation, however to me,…its NOT! I still do not have the feeling that this thing is meant to go down. Don’t know why but that’s how I feel. The trading today was not of the kind that I was expecting after being so long in the overbought zone and last days close with a Doji. The stock only went down 1.05% and saw a close of 0.94.
But markets never seize to amaze me so I will have to go against my gut feeling and say our precious silver stock is looking at another down day tomorrow.
Take care and prosper. Oh and do spare a moment to vote on the poll and take part in the survey I posted.
YeOldGoldNugget’s links of interest
- One Indicator The Government Can’t Ignore
- 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)
- 100% Returns on a Canadian Stock (Video)
- Introducing the Perfect Portfolio
- What does winter hold for Crude Oil?
- All 7 Traders Whiteboard videos
- Free Email Trading Course Copy
- New Video: ETF GLD is analyzed
- Register for all the latest Trader’s Blog postings Today.