Downward pressure abating
The share price of Australian copper explorer American West Metals (ASX AW1 / WKN A3DE4Y) reached a high of 0.375 Australian dollars in the first third of August after the fulminant rise since spring (compare our June chart check).
The resulting gap was closed in a first wave of consolidation at the beginning of September. A further price slide followed at the end of September with high volume, which ended close to the 200-day line – where the price has been moving sideways for two weeks, now. A significant break of this line has not happened, so far.
The 100-day line continues to rise – this is to be seen as positive; and also the 200 day line is still moving sideways after the rising phase – this is to be seen as neutral.
The indicators shown below mostly show no further downward pressure for the moment. The MACD is very far down and could be close to a technical buy signal – this would be the case if the blue line would rise above the red line. This situation has already occurred with the Stochastic indicator. The trend indicator has found its bottom and is rising slightly again – deep in negative terrain, though. The Overbought/ Oversold indicator has been on the border of the overbought zone three times in the last six months with 2.0 and is currently quoted exactly in the neutral middle with 0.
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