As you may have noticed in the Trade Log, I bought GSV today on its harsh in-day pullback to the 50 day moving average. Let’s look at the daily and weekly charts a little closer. I am using large charts to gain the full context of the patterns. Click the chart for clarity.
The daily shows a fairly nice looking Inverted H&S with the price above the 50 and 200 day averages. All panel indicators are positive with MACD 0+, RSI 50+ and AROON up. ADX shows a trendless stock with a slight positive bias. The neckline to activate the pattern is so far away that I was not going to wait for such a confirmation. But one day if it crosses 2 to 2.10 a measured target of 2.80 would be loaded.
The weekly chart shows a massive Cup & Handle, complete with a higher right side than left. There is the little I H&S pattern with its neckline resistance. Although this could be well down the road if at all, the implications of the Cup if it were to prove bullish are over 230% higher, near 6. Crazy I know, but that is the measurement.
Just an idea for gold bugs looking for prospects. Start to have caution if it loses the daily 50 & 200 day moving averages and think about limiting risk if it drops below 1.60. Of course the caveat there is these little explore-cos are notorious for tanking when some gold fund or other decides to puke its shares for whatever reason.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason), which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
