Indicators providing initial buy signals
The six-month chart of Canadian silver company Summa Silver (TSXV SSVR / WKN A2P4EE) has shown a steady downward trend since the summer, during which the share price has roughly halved and broken through both average lines. Starting November 13, though, a bottom formation with rising lows has formed – currently still limited on the upside by the gray resistance line at 0.295 Canadian dollars. Should this be overcome, the next target would be the former gray support line at CAD 0.335.
The 100 and 200-day lines have been falling since August – at the end of October, the 100-day line crossed the 200-day line to the downside – which should also be viewed negatively. On the other hand, the share price is currently very far below the average lines – a situation that does not usually last very long.
On the indicator side, there are initial signs of an upward turnaround. The MACD and the stochastic indicator have recently broken away from their six-month lows and have both generated a buy signal (the blue line crosses the red line to the upside). The same can be said of the trend confirmator, which has also left its six-month low and is slowly rising again – although it is still clearly in negative territory and far from the neutral 100. The expansion into the red zone of the Chaikin Money Flow indicator has been shrinking slightly for a few days now, which can be interpreted as an initial indication that capital outflows from the share are slowing.
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