Averages with a technical buy signal
The share price of Canadian silver company Silver Storm Mining (TSXV SVRS / WKN A3EWAU / FRA SVR) reached its six-month high of 0.16 Canadian dollars in December – apart from a single peak in November – and has been moving downwards in the blue downtrend channel ever since. The downward movement was halted at the end of February by the massive gray support line (formed in October and November). A strong countermovement began here, which led the share price – particularly in April – to the current price of CAD 0.145 with high turnover. The upper line of the trend channel and both average lines were easily and clearly overcome.
The 100-day line began its rise before Christmas, and fortunately the 200-day line has now also followed it upwards in the past two days (purple arrow). Equally positive is the fact that the 100-day line rose above the 200-day line at the beginning of March – a technical buy signal.
The indicators shown are also signaling positive signs. At the end of March, for example, the MACD generated a technical buy signal when the blue line crossed above the red line. Shortly afterwards, the trend confirming indicator managed to move back above the neutral 100 into positive territory – where it is currently continuing to rise. The overbought/oversold indicator entered the overbought zone at three points in time with values above 2.0, but was able to quickly reduce this again this time and is clearly in positive territory at 1.0, but is currently not to be seen as overheated. The Chaikin Money Flow indicated an outflow of capital from the share when the price remained in the downward trend channel due to its course in the red zone. This tendency decreased over the course of the last few months (expansion into the red zone decreased) and was able to indicate a change in trend two weeks ago – the trend in the green zone currently indicates an inflow of capital.
Source: Comdirect
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