John: After four days of red bearish candles, Gold Bullion Development (GBB, TSX-V) ended Friday’s trading with a small white candle on higher than normal volume. Given last week’s market chaos, that was no small achievement.
Looking at the daily chart we see that the last 14 trading days have confined the price moves between the limits of 33.5 cents and 42.5 cents, thus effectively working in a horizontal parallel channel. This is base forming consolidation.
The daily volume over this period is interesting in that the volume on up days is far greater than the volume on down days, a very bullish sign.
The RSI indicator, although slightly below the 50% level, has turned up. A move through 50% is considered a buy signal. Looks very bullish.
The Slow Stochastics indicator shows the %K (black line) is low but has turned up and the %D (red line) has turned down, thus preparing for a bullish crossover.
The ADX trend indicator shows a slightly weakening bullish trend but all three indicators are in bullish orientation – the ADX (black line), +DI (green line) and the -DI (red line).
Friday I was able to spend some time watching the trading and what excited me more than anything that I saw on the charts was that time and again when the bid was hit, the lots were replaced. If the price was allowed to drop a cent it was always well controlled. There are many more bids waiting in the wings and these will come to the fore once the markets cool down their volatility and return to some sort of order to promote trust in investors. Yes, I am excited for this company and Gold Bullion investors. Opportunities such as this are rare, so sit back and watch a fantastic scene unfold.