John: On Friday, Adventure Gold (AGE, TSX-V) opened at 50 cents, its high, then drifted down and closed at its low of 47 cents for a loss of 1 penny on relatively light CDNX volume of 155,000 shares.
Adventure Gold at present is in a waiting mode. There is no selling pressure, just a lack of news. Although the stock is quiet it is still very much in a bullish state and at a very strong level of support.
Looking at the 4-month daily chart above, we see that after the move up to 47 cents on November 10 the price drifted lower to the 40 cent level on decreasing volume. After 3 sessions of consolidation, AGE started to firm up and climbed to a high of 56 cents on December 2. It has gradually declined back to the 47 cent level on rather low volume. This price level is a strong pivotal support area as well as sitting right on the close bullish supporting EMA(20) which is also at 47 cents.
The set of blue Fibonacci levels show the next Fibonacci Target to be at the 66 cent level (this is not a BMR price target as we don’t give price targets but a theoretical Fibonacci target based on technical analysis as a guide for investors).
Looking at the Indicators:
The RSI is resting on a support level at 53%, thus is still bullish.
The Chaikin Money Flow (CMF) indicator shows the present buying pressure is quite low. The stock is being accumulated without pressure.
The ADX trend indicator has the +DI (green line) at 22 and above the -DI (red line) at 16. The ADX (black line) is declining at the 40 level which indicates a weakening bullish trend – a bullish orientation.
Outlook: Adventure Gold at present is in a waiting mode. There is no selling pressure, just a lack of news. Although the stock is quiet it is still very much in a bullish state and at a very strong level of support.
