Will the Turnaround follow, soon?
The stock price of Canadian gold explorer Sitka Gold (TSXV SIG / WKN A2JG70) shows a steep rise in the twelve-month chart since last summer, consistently moving above the blue trend line and producing a quadrupling of the stock price from the low point to the top. The consolidation running since April reduced the price by about a third, but has not yet reached the 100 or 200-day line – there is still some room to the trend line, and the round mark of 0.40 Canadian dollars should also act as support.
Both average lines are rising, and pleasingly, the 100-day line is clearly running above the 200-day line.
The indicators shown reflect the price decline and are mostly near twelve-month lows – this is where an upward turn has often occurred in the past. MACD and Stochastics generated sell signals shortly after the start of consolidation (the blue line crosses the red line downwards in each case) – the Stochastics has already been able to turn back to buy recently. The Chaikin Money Flow is still pleasing, signaling money inflow into the stock despite the price decline until yesterday – only now is it neutral. A few days ago, the Overbought/Oversold indicator reached an absolute twelve-month low with a value of -0.6, from which it has only slightly recovered so far – there is clearly room for improvement here.
Source: Comdirect
