The stock price of Canadian gold explorer Altiplano Metals (WKN A2JNFG) has been steadily falling since October below the blue trend line, losing about half of its value. The bottoming out from November to January was successful, and with high trading volumes, it managed to jump above the blue line – in the short term, it even briefly overcame the 100-day line, which, however, has since remained an obstacle yet to be cracked.
Due to the prolonged downward movement, both average lines are still moving downwards, and the 100-day line continues to be unfavorably positioned below the 200-day line.
The sell signal from the Directional Movement Index (DMI) in February (the red line crosses the green line downwards) is currently weakening significantly, as both lines have changed direction and are converging again. Correspondingly, the trend strength indicated by the blue line has recently decreased noticeably. The Stochastic indicator, very low in its scaling, is likely to be very close to a buy signal – this would be given by the blue line crossing above the red line. Noteworthy is the Chaikin Money Flow, which has been running in the green area (and steadily rising) since mid-February. This signals an inflow of capital into the stock. The momentum of the upward movement is far from exhausted, considering the Overbought/Oversold indicator, which recently was near its six-month low and has just now slightly risen above the neutral zero (it would be overbought at 2.0).
Source: Comdirect
