The Australian copper and base metal explorer American West Metals American West Metals (WKN A3DE4Y (ASX AW1)), operating in North America, shows a significant price decline in the winter months on the six-month chart. A counter-movement in January could not be sustained, followed by a renewed, this time flatter, downward impulse. Except for an outlier to the downside in early April, a massive bottom at 0.04 Australian dollars has formed since December. From this level, the stock managed to overcome the flatter blue downward trendline and the 100-day line a week ago, and has so far remained above them.
Both moving averages ended their downward movement a few days ago and are currently moving sideways.
With the beginning of the upward impulse, the MACD indicator generated a buy signal that is still intact (the blue line crosses the red line upwards). Shortly after, the trend confirmer also managed to jump back into positive territory above 100. The Money Flow Index (volume-weighted Relative Strength RSI) continues its upward trend unbroken – although it currently shows a six-month high, it is still 15 points away from being considered “overbought” (from 80). The Overbought/Oversold indicator is also still moderate. Although it recently reached its six-month top, it also missed being rated as “overbought” (from 2.0). It is currently at 1.0 after a swift consolidation – positive but by no means overheated.
Source: Comdirect
