Chart Update Formation Metals: Double Resistance Break ahead?

The six-month chart of the Canadian gold and industrial metals explorer Formation Metals (WKN A3D492 / CSE FOMO) shows a multi-month triangle formation, within which the price has been moving sideways around 0.35 Canadian dollars for a good two months.

The gray – repeatedly tested – resistance line has now joined the falling red upper boundary. A break of both would be a clear upward signal. Recently, significantly higher trading volumes could indicate an impending strong movement.

Formation Metals: 200-Day Line Provides Support

The rising 200-day line continues to provide support for this – in contrast, the 100-day line, after its earlier rise, is now just moving sideways – but fortunately clearly above the 200-day line.

MACD and Stochastic indicators switch rapidly between buy and sell and back again – these are therefore not valid signals. This ultimately neutral trend is also reflected by the trend confirmer, which has been running close to the neutral 100 in recent weeks.

The Chaikin Money Flow is remarkable: since April, it has been exclusively in the green zone, thus indicating a continuous inflow of capital into the stock – with a steadily increasing trend since August.

formationmet210925-GOLDINVEST — *Chart of Formation Metals; Source: Comdirect*

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