The twelve-month chart of the Canadian silver producer Silvercorp Metals (WKN A0EAS0 / TSX SVM) shows a rapid decline in the share price (approx. 40%) after last year’s peak, by year-end.
This is where the still-intact steady upward movement began, which already brought the price to its old high point in July – however, it again failed to overcome the 7.0 Canadian dollar mark. The subsequent consolidation then stopped at the 6 CAD mark (having repeatedly acted as resistance or support over the past twelve months) – for three weeks now, the third attempt to break the 7 CAD mark has been underway.
Moving Averages and Indicators should not Hinder Silvercorp’s Upward Breakout
Both moving averages have been rising since spring – furthermore, the 100-day line generated a medium-term buy signal by crossing above the 200-day line.
The MACD also recently achieved such a signal (the blue line crosses the red line upwards). There was a sell signal from the Stochastic, which, however, could already be close to a buy signal again (here too, if the blue line crosses the red line upwards). However, the Stochastic signals have occurred significantly more frequently recently than with other indicators, so they should be considered more short-term. The DMI clearly points upwards: the green line continues to rise while the red line continues to fall – furthermore, the blue line, which indicates the strength of the current trend, also continues to rise. The Overbought/Oversold Indicator is moving just under 1.0 in the middle of the range where it has spent most of its time. Noteworthy is the Chaikin Money Flow, which, through its uninterrupted four-month run in the green zone, indicates a steady capital inflow into the stock.
