For the past two weeks we’ve taken a very cautious stance toward the CDNX on a short-term basis and for many good reasons as outlined in our last two “Week In Review” pieces. The next few trading sessions could be critical, we believe, in terms of deciding the battle between the bulls and the bears as far as the Venture’s near-term outlook is concerned. The long-term bull market remains intact. Significant near-term risks continue to exist, however.
The CDNX retreated today to close at 2305 after climbing as high as 2328, a gain of 274 points or 13% in just eight trading sessions. The big test now comes to see if the Index can blast through 2328 on strong volume, which would change the dynamics, or if it will fall below 2300 and head south again for a possible 3-wave correction as John has argued is very possible.
These are interesting times as the updated CDNX chart below reveals. The Index should give us some important answers very soon. For the bulls out there, at least a couple of critical things have to happen – volume must increase and the RSI has got to break above a resistance trendline.
We’ll be watching trading very closely Friday and we’ll be posting a detailed update on the CDNX technicals Sunday in Part 1 of our Week In Review.
Thanks for the update, I thought it was very interesting to see the sell off late in the day in gold and silver also, looking forward to the companies update you spoke of that would be out tomorrow and also was wondering when we are going to hear the 2nd interview from CQX.
Thanks
Comment by GREG H — March 24, 2011 @ 9:43 pm
Hello BMR!
Hos does the ABI chatt look like after yesterdays breakout with good volyme? It must look good!?
Comment by Carl — March 24, 2011 @ 9:52 pm
Carl, consider that a large chunk of ABI’s volume was Insider Sells. Consolidated/JDM exercised warrants/options last month, I don’t how many they have to dump. Judith Lortie Hinse also made a small sell. If it was Consolidated/JDM that sold, then in my experience, any further or significant upward movement is at their mercy for as long as they keep their insider status.
Comment by Andrew — March 25, 2011 @ 5:00 am
Dilution on the ABI front – straight after a big pump up yesterday – VERY suspicious!!
Comment by Herb — March 25, 2011 @ 6:11 am
Possibly Herb, especially if there was knowledge of the impending news? The jump on momentum was inevitable after the .5 million bought at .21. Great for the insider dumping at .23. Hopefully, Consolidated will reduce their insider status. I will look forward to Jon’s synopsis of today’s news release.
Comment by Andrew — March 25, 2011 @ 6:28 am
This company needs cash, but the rally had momentum, throwing this in at this point seems very suspcious.
Comment by Herb — March 25, 2011 @ 6:37 am