Some Observations on Level II suggest that there is some liquidity in the area of .30 cents... It doesn't seem to be overwhelming... as an entry point of low risk considering the pricing history... it most certainly could be said that it is much better than buying at 40cents...
I looked over the chart and the price is in close proximity to a lower bollinger touch on a rising trend ... the best kind of touch... ..27 to 28 cents...... It was a reaction back fill that got a bit out of hand.... but it was a couple of tough days across the board for Uranium... and my level II confirmed as much in the Uranium watch... there was a bit of an iceberg set up at .30 cents for a day. Friday played out to form as the rebound day... which is unnatural... I have said before it is like turning the spigot (Institutional traders connected over some type of Star Chamber network over the Internet) off so the distribution can be set up to continue the following week... I ended up going to cash on a couple of strong movers because they likely would fall back on back fill and moved on some really oversold issues that downside risk was small, and that were at strategic points of entry...
Support has moved in at .28 cents... I have been waiting for the color of the support to show itself and by that I mean....... is it support?............ or bear bait that is is going to draw down a more dedicated bearish response... so far it appears to be legitimate support............ so as an entry point of low risk, it is qualifying on quite a few counts...
In particular the special focus study in the side bar to the right has two indicators at the bottom of the chart OBV and Accum/Dist which are very bullish looking and rising... If you take it upon yourself and back test studies with these two indicators... you will come away with the same resolve as I have... this pair in the position they are presenting is consistent with strong accumulation when they are working in tandem...
Taking a position at this point will have much less risk associated with it... It is my opinion that if the trend were to maintain the reverse at this point it would offer an exit at break even over the next week or days... and if it showed resolve to drop below .27 cents I would expect it to come back to .28 or .29 cents for a minimal loss if you don't panic... however this is the worst... on the flip side the chart says to take a position if you like this stock and odds according to the twin indicators I mentioned suggest (they are forecast indicators) the trend will continue to the upside after this consolidation is over.
I would like to point out that it is not necessary for OBV and Accum/Dist to rise in tandem for an uptrend to establish and make solid up moves... OBV represents retail demand (IMOP) and as long as retail demand overpowers..... the indicator.... Accum/Dist which represents institutional direction of selling or buying... can be declining... If the institutions are selling into strength the direction will be down... if they are accumulating with the direction of the retail crowd... it will be rising...
OBV and Accum/Dist measure volume... the main difference is that OBV measures the effect of volume as a bullish or bearish measure over a daily cumulative approach where as Accum/Dist uses the same calculations for the most part.... but measures of a different time period that reflects the volume in a different pattern... If they are both going down... I will be surprised to see any kind of uptrend in progress.
GLTA Lostoutwest
If you see the hand mousing over screen shots... click on screen shots to enlarge them.
After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page
|| Stockcharts Public List ||
|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE
Please read our Complete Disclosure
No comments:
Post a Comment