Uncle,
do you mind explaining this chart in detail for us dummies.
I presume you assess it on a long term basis as a rounding saucer pattern and upon breaking resistance at 13, it should move higher in an uptrend.
Can you explain why this stock has taken a long long time to eventually lead to a break out and because of this length of time does that mean when it does break out, it should lead to very large gains???
More detail is very appreciated Uncle.
First up, I'm definitely not a technical analysis expert so I really can't explain the chart in any terms that an accomplished ta would, and certainly don't want to start the usual ta v fa arguments all over again. All the chart portrays is the disappointment from previous ventures coming to an end and the increasing optimism of the current multi-faceted exploration prospects being priced in for the future.
As time advances and each project advances, each pullback in the price is met by buyers not willing to sit by the sidelines for a lower price and so each wave of weakness is met by support backed by improving fundamentals. So we get the saucer pattern. An no, if it breaks out technically, it is still no guarantee of
huge gains, without some good announcements to accompany it or precede it or support it.
The fact that this one lines up with some of my favorite indicators eg fibs, OBV, & symmetrical parabola curves strongly supports the fundamentals - that is, until the fundamentals change? I'm sure a ta would be able to explain it better, but for me after a while you get a 'feel' for some stocks if you watch them on a daily basis eg watching how fast the bidders fill the depth gives you a feel of the sentiment etc and having a look at the course of trades at the end of each day if you get really keen.
It still comes down to drilling holes, getting lucky and hitting pay dirt in the end.
UF
Another advanced spec, RED, is looking interesting too.