Chart Check American West: after Gap Closure, a New Upward Trend Established

American West Metals recording a drill core and mineralization

The share price of the Australian project developer for copper, zinc and indium American West Metals (WKN A3DE4Y / ASX AW1) slowly slipped below the two average lines in the summer months and was able to end the downward movement in mid-October with a liberating blow with sharply increased sales. The resulting gap could be closed in the course of the subsequent consolidation – the blue upward trend line was confirmed and, fortunately, the price turned north again above the two average lines – accompanied by increasing sales again.

While the 100-day line is clearly rising again, the 200-day line is still rather horizontal. A medium-term buy signal from the two lines should occur in the next few days when the 100-day line crosses the 200-day line upwards.

Medium-term Buy Signal for American West in the Next few Days?

The buy signal of the stochastic indicator was also followed today by the MACD – in both cases, the blue line overcomes the red line of the indicator.

The trend confirmer slipped again during the consolidation, but recently turned above the neutral 100 and thus remains in positive territory.

The upward dynamic of the current movement is still moderate – the overbought/oversold indicator has only just left its low point near the six-month lows and, at just under 1.0, is clearly positive but still far from overheating (from 2.0).

Chart of American West Metals with indicators
Source: Comdirect

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