Consolidation now clearly over
The share price of the Australian copper explorer American West Metals (WKN A3DE4Y / ASX AW1) experienced an extremely volatile year in 2023: after the share price halved in the first two months, the upward movement that has always run above the blue trend line and is still intact today began in March. The price explosion from June to September, which took place amid extremely high turnover, came to an end after the consolidation – the purple downward trend line that emerged in the process was significantly broken a few weeks ago, as were the two average lines. The blue upward trend line thus proved to be the stronger line.
The 200-day line continues to rise; the currently falling 100-day line was already able to overcome the 200-day line in August (which was a medium-term technical buy signal) and will probably be able to avoid falling below the 200 again if prices continue to rise. Overall, the average lines should be viewed as slightly positive.
The MACD indicator gave a technical buy signal in December (blue line crosses red line upwards) – this has not yet been reversed. The trend confirmer made it back above the neutral 100 into positive territory in November and is currently continuing to rise. As early as the end of July, the Chaikin Money Flow indicated an outflow of capital from the share by slipping into the red zone. With one short-term exception, this was the case until a few days ago. For the past two days, this indicator has been in the green zone, albeit only minimally so far, indicating an inflow of capital. The overbought/oversold indicator shows the volatility of the price as four times, an overbought situation was given with a value of 2.0 – once the indicator also came close to oversold status with -1.5. It currently stands at 1.0 with a medium-term upward trend and can therefore be regarded as clearly positive but still far from overheated.
Despite all the volatility, the bottom line is that the share price is higher today than at the beginning of last year and around four times higher than at the low point in March 2023.
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