John: Yesterday, Sidon International Resources (SD, TSX-V) opened at 13 cents, its high, touched a low of 12 cents and then climbed half a penny to close at 12.5 cents, unchanged on the day on CDNX volume of 1.2 million shares.
Looking at the 6-month daily chart, we see thatĀ in November Sidon traded in a horizontal trend channel for 17 sessions before breaking out to the upside from 10.5 cents.Ā In 8 sessions it reached a high of 26.5 cents on December 7 on huge volume of over 16.5 million CDNX shares. Then SD retraced to 18 cents (the Fibonacci 50% level) before breaking to the upside for 6 sessions. Afterward it resumed the retracement to trade in a horizontal trend channel between 12.5 cents and 13.5 cents.
The Fibonacci set shows the next level is at 36 cents (we caution that this is not a BMR price target as we donāt give price targets but a theoretical Fibonacci level based on technical analysis).Ā The main resistance levels for an upside breakout are at 15 cents and 22 cents.
So what do we look for to warn us that a breakout to the upside is happening or about to happen?
If we look at the previous breakout on Nov. 25 (vertical orange line), we see thatĀ there was an increase from the previous day’s volume, the close was above the top of the channel, the RSI broke above its EMA(20) and the 50% level. The Slow Stochastics %K crossed up above the %D above 20% and the CMF selling pressure began to reduce. So there are quite a few indications to watch for. Ā In this present situation the price is forming a base with the stock in distribution mode so we must first watch for an increase in daily volume which will probably precede an increase in price. Then the price will break above 13.5 cents and close above that level.
Looking at the indicators:
The RSI is flat at 38%, below the EMA(20) at 41%.
The Slow Stochastics is oversold with the %K (black line) at 13 and above the %D (red line) at 11.
The Chaikin Money Flow (CMF) indicator shows that the selling pressureĀ in this channel is not as high as that in Nov., so perhaps the channel will be shorter than the previous one before a breakout occurs.
Outlook: The trading will continue in the channel until such time that the buying pressure causes a breakout.Ā Watch for the indicators we pointed out.
called company last week.
IR said “the geologist is busy with KOK.V because they were audited. He is waiting to resolve this before he complies the drill results.”
This company is full of it, regretting investing in this name. You would think drill results that are WAY overdue would be priority #1 for these guys.
Abby get your act together, dont ruin another company like you did to EZ.V
Comment by J — February 15, 2011 @ 6:42 am
If this is fact of “J” conversation, I agree 100% , this is BS!!! Stk holders are priority #1 and results are way overdue. Total nonsense!!! not to publish results then get on to resolving ur other buisiness!! Again , BS and not happy to hear this at all!!
Major Stock Holder.
Comment by nikolay — February 15, 2011 @ 8:48 am
Wow,The technical analysis here is bang on! one has to wonder what really moves markets….
Comment by Tommy — February 16, 2011 @ 12:00 pm