The daily chart now shows in clearer detail the breakout which happened on November the 16th. If you take a look at the volume chart you’ll see that volume has been steadily building up since the start of this rally November the 10th. On and off we’ve seen 353K, 402K, 545K and 732K shares being traded with the larger volumes being seen since breaking resistance at 1.00 at November the 16th.
When I take a look at the Moving Average Convergence Divergence (MACD) you can see we’ve had the bullish crossover a couple of trading days ago and we are still up-trending. There is as of yet no sign of any reversal showing up on the daily. (Divergence still positive)
Relative Strength Indicator (RSI) is now just about getting back at the start of being overbought. I say, at the start cause even on the daily chart Orko as we can see from the rally from early September, Orko can stay in the overbought zone for a prolonged time. We are now only a couple days in overbought so still nothing to worry about as far as I’m concerned.
Most juniors were trading down and Orko was trading up and managed to close at 1.18+0.04 (3.51%). All in all still very pleased with the action going on in Orko. What does one need more, this has it all for the short-term trader AND for the long-term trader. For a short-term trader, just take a look at the chart, buy early September, get out September 25, get in early October, get out late October,…
On to the weekly where we try to spot the expected longer term trend. From the weekly you’ll see on the MACD chart that we are only since the start of October trending above the MACD center line. That fact and the fact that we are trading above all Moving Averages bodes well for Orko long term.
Also from the chart you can see the resistance line I’ve drawn at 1.00 and the bottom at around 0.80. The 1.00 seems pretty clear to me. The 0.80 is found by looking at the 200 MA, you’ll see that from the start of the big drop from April 2008 to about September 2008, there is some sideways action going on around 0.80. Besides this, getting under 0.80 there would mean going under the 200 MA. The 0.80 has acted as support and resistance before.
Placing some Fibonacci retracement lines on the chart from our high of about 2.00 and our low of 0.28 gives us 1.1
4 as another key point as this coincides with the 50% Fibonacci. Fibonacci wise our next target should be 1.34.
Would be a very hard feat for YeOldGoldNugget to describe these charts as being bearish in nature if not near impossible.
Nope, this bull has horns and some very nice ones mind you. Should be clear to individuals, funds and computer programs that Orko is trading up from here. With Pan American Silver again stating very clearly to have a production decision ready on La Preciosa by the end of 2010 I do not think I need to draw a little picture for visual purposes as to where this thing is going to go…do I?
I think most can do their own maths on that. Here’s a little blast from the past and from when I just started up my blog on Orko. Doesn’t the low seventies sound cheap now? Back then it probably wasn’t to most. That is why it is so important to do your own due diligence, find a stock which you like, with decent management, approachable to shareholders, valid track record, good project(s), plenty of funding, interest from junior/senior…AND STICK WITH IT!
That would be my advice anyway as a long term holder. For the surfers amongst us, please ride the long waves only, don’t bet against our precious Orko by going short. That is bad JuJu! The market will punish you for it I’m sure.
I think that’s about all I have to say for the moment about Orko. One more thing though, I was going to do a gold chart but time is short so this will have to wait till tomorrow. Only two things I have to say right now, never a bad idea to take some profits off the table and also never to go against the trend. Though I recognize the overbought and the big rally without correction I still find it extremely dangerous betting against this rally. More on that tomorrow.
YeOldGoldNugget’s links of interest
- New Video: The gold market continues to steam roll ahead!
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- Introducing the Perfect Portfolio
- What does winter hold for Crude Oil?
- Free Email Trading Course Copy
- New Video: ETF GLD is analyzed