The six-month chart of Canadian uranium explorer Aero Energy (WKN A4007Y / TSXV AERO) shows a massive consolidation since early March, briefly interrupted in April, which lasted until the end of May. Accompanied by the second-highest trading volume of the last six months, a significant jump upwards was achieved – both moving averages and (so far only intraday) the round mark of 0.05 Canadian dollars were clearly overcome.
Unfortunately, both moving averages trended downward during the observation period – at least the 100-day line managed to end the decline in recent days and has since moved sideways.
The MACD indicator was able to generate a buy signal in early April (the blue line crossed above the red line) – this then weakened over the following weeks (but was never reversed) and was recently clearly confirmed and strengthened. The Stochastic indicator generated a clear buy signal at the end of May at the six-month low of the indicator scale, which was reversed a few days later at the six-month high of the indicator scale, only to clearly turn back to buy with the current volume peak. The more complex DMI (Directional Movement Index) also presents itself significantly positive: the green line, clearly running above the still falling red line, is rising sharply – the blue line is also clearly trending upwards and indicates an increasing strength of the current trend.
The Overbought/Oversold indicator has already fallen back into the (slightly positive) zone where it has moved almost exclusively in the last six months. The recent price explosion caused it to overshoot far into overbought territory (>2.0) – but normalization followed quickly. Currently, it is not overheated in any way.
