MACD indicator announced turnaround very early on

After the price of Canadian P2 Gold (WKN A2QCBZ / TSXV PGLD) moved sideways between 0.20 and 0.25 Canadian dollars in the summer months, the share lost around two thirds of its value by mid-October due to the downward movement below the blue trend line. At CAD 0.075, a six-week bottoming process began, which led to a strong upward impulse that significantly overcame the blue downward trend line and also the 100-day line with an increase of around 100%. The purple uptrend line can now be derived from the rising lows. A price gap created by the jump above the blue line was closed a few days later.

Both average lines continue to fall – which is still negative. Nevertheless, the 200-day line is slowing its downward trend and has been moving almost sideways for the past two weeks.

The MACD indicator generated a technical buy signal (blue line crosses red line upwards) at the beginning of the bottoming process, which was not reversed despite two critical moments and was clearly confirmed again two days ago. Parallel to the price, the trend confirmer showed strength with the upward impulse at the end of November and clearly rose above the neutral 100 into positive territory and has been moving sideways for two weeks. The overbought/oversold indicator has recorded a fundamental trend increase since the beginning of September and has not fallen below neutral zero in the past eight weeks. In all upward phases, this indicator has always remained moderate and has always been clearly below the overbought status (from 2.0). The current level of 0.7 is clearly positive and also still far from overbought. The Money Flow Index (sales-weighted relative strength RSI) behaves in almost the same way: rising trend, but always only at a maximum of 60 (above 80 the indicator would be considered overbought).

Share price chart with moving averages, volume bars and technical indicators such as MACD and Money Flow Index. A gap and trend lines are highlighted.

Source: Comdirect

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