After peaking in October, the share price of Canadian gold explorer Sitka Gold (TSXV SIG / WKN A2JG70) trended lower for four months below the red trend line, losing around a third of its value. The 200-day line recently acted as strong support, after which the share price managed yesterday, on very high volume, to break above the downtrend line. In the process, it also reached the level of one Canadian dollar and the 100-day line.
Encouragingly, the 200-day line continues to rise, and the 100-day line also ended the (albeit only minimal) downward tendency that began in February and has been moving sideways again for a few days now.
Both the MACD and the stochastic indicator were able to generate a buy signal as the blue line crossed above the red line. The stochastic indicator was also able to halt the downward movement of its signal lines.
From the perspective of the Money Flow Index (volume-weighted relative strength RSI), there is still plenty of room to the upside—this indicator only recently moved up out of the 20 to 30 range, which signals an oversold condition, and is also showing only a sideways tendency.
