The stock price of Canadian gold explorer Quimbaya Gold moved mainly between 0.4 and 0.5 Canadian dollars from May to October last year, following a short-term top in April. The rapid decline to just under 0.3 CAD in October led to a multi-month bottom formation (gray line). From the end of January, trading volumes increased massively, and recently the stock price managed to return to near the summer highs – in the process, the 100-day line and the 200-day line were easily and significantly surpassed.
Both average lines have ended their downward movement – the 200-day line has been rising again for several days.
While the MACD indicator generated a buy signal (currently further intensifying) during February – the blue line crosses the red line upwards – the stochastic indicator could turn to sell in the short term. However, it is already trading at the highest point of its scale near 100. With a further rising tendency, the trend confirmer has been running in positive territory above 100 for three weeks. Three times the Overbought/Oversold indicator reached the area of 2.0 or more and was thus considered overbought – the recent record value was rapidly reduced again and the indicator ranks around one as in recent months and is considered positive but not overheated. The Chaikin Money Flow is remarkably showing – since January it has been signaling a continuous inflow of capital into the stock through its steady course in the green zone.
Source: ComDirect
