The share price of the Canadian gold explorer Formation Metals (WKN A3D492 / TSXV FOMO) ended the consolidation that began in October below the red trend line at the end of November. Since then, it has been moving significantly upwards again above the green line – even the round mark of 0.50 Canadian dollars was reached once. The subsequent decline stopped at the green line – yesterday, the resistance at 0.40 CAD was broken.
Both moving averages are currently moving sideways – however, the 100-day average has fortunately been rising again slightly since February. Overcoming the 200-day average (still possible in February) would then be a medium-term buy signal.
The Stochastic indicator recently generated a buy signal (blue line crosses red line upwards). The Chaikin Money Flow also shows a positive trend, indicating capital inflow into the stock due to its movement in the green zone since January.
The price development is by no means overheated, as the Overbought/Oversold indicator is primarily in the lower range of its previous movement and, with a value close to zero, is very far from the overbought status of this indicator (from 2.0).
