The 12-month chart of Canadian gold and copper explorer Fairchild Gold (WKN A3D1D5 / TSXV FAIR) ultimately moved sideways between 0.03 and 0.06 Canadian dollars during the first six months. With the upward momentum in August, the 0.10 CAD mark was reached within a few weeks. The subsequent approximately four-month consolidation within the red trend channel ended at the turn of the year with support from the 200-day line—the share price is currently heading back towards 0.10 CAD above the 100-day line.
Both averages are rising significantly—furthermore, the medium-term buy signal, which was created in early October by the 100-day line crossing above the 200-day line, remains in place.
The MACD also generated a buy signal at the beginning of the year: the blue line crossed above the red line. Although this signal has been weakening for three weeks, there has ultimately been no clear impulse for a reversal—both lines are running almost identically.
According to the Chaikin Money Flow Index, capital is currently flowing back into the stock (movement in the green zone).
The price development is by no means overheated; the Overbought/Oversold indicator stands at 0.6, in the middle range of the last twelve months. Furthermore, the 2.0 mark, at which the indicator is considered overbought, is still far off.
