The six-month chart of the Canadian precious metal explorer Aztec Minerals Corp. (TSX-V: AZT / WKN A2DRF0) shows a strong price increase until June, from which point the three-month downward movement below the blue trend line began. However, the six-month green upward line proved to be stronger, and so the upward trend continued in the first half of September with the breaking of the downward trend line. The trend break was accompanied by significantly higher sales, and so the June high was quickly approached and reached today.
Averages with a Positive Picture for Aztec Minerals
The average lines show a positive picture: After the 100-day line has been rising again since June, the 200-day line also started to rise again a few weeks ago. Also pleasing is the buy signal of the averages – created by the upward crossing of the 100-day through the 200-day line at the beginning of August.
A chart-technical buy signal was generated three weeks ago by the MACD indicator (the blue line crosses the red line upwards). Since the blue line is increasingly moving away from the red line, it can be stated that the strength of the buy signal is increasing. Shortly before the MACD, the Stochastic also succeeded in generating a buy signal – but it weakened recently and jumped to sell, which was corrected again a few days later. The Chaikin Money Flow is remarkable: since the beginning of August it has (with one small exception) run exclusively in the green zone, thus indicating a continuous (and recently sharply increased) inflow of capital into the stock.
Whether the price movement is already overheated can be seen on the Overbought/Oversold indicator: strictly speaking, the value of 2.0, which is considered overbought, was never reached in the observation period, even if the June top came close. Currently, the indicator is trading near 1.5 – not yet overheated according to the rules, but already in a range that has been reached rather rarely (and only sporadically) in the last six months.
