The technicals and fundamentals for Seafield Resources (SFF, TSX-V) are both now perfectly aligned, strongly suggesting that a potential significant upside move is imminent with this stock. We’ll be laying out the new and very intriguing fundamental case for Seafield later today. First, BMR’s technical analyst examines an updated bullish-looking SFF chart:
There should be very bullish sentiment toward this stock in the coming week, resulting in a good move to the upside on increased volume.
John: After 3 weeks of consolidation between 16.5 cents and 18 cents, Seafield Resources (SFF, TSX-V) is threatening to break to the upside. On Friday it opened at 18 cents, traded as low as 16.5 cents, but then closed strongly at 19 cents.
Looking at the chart we can see on Thursday and Friday 2 white shaved candles indicating buying pressure with both days closing at their highs. Friday marked the highest closing price for Seafield since May 19.
The Bollinger Bands show that with Friday’s strong showing, the bands are starting to splay or diverge. This suggests the indicated strength to the upside will continue. Also note that the SMA(13), the red dotted line, has turned up – another bullish sign.
Friday’s close was also above the SMA(50) for the first time since April 14.
Seafield has excellent support at 16.5 cents and the next major resistance level is at 22 cents. I have not shown these on the chart so as to avoid overcrowding, keeping it simple. We will be following this very closely in the near future with more charts.
Looking at the indicators:
The RSI has broken above the 50% line to 69% – very bullish but not overbought.
The ADX trend indicator shows the +DI (green line) has made a definitive break above the -DI (red line) and the ADX (black line) trend strength indicator is low, suggesting the present trend strength is weak but bullish. The ADX (black line) is turning up, showing the weak bullish trend is getting stronger.
The Chaikin Money Flow (CMF) indicator shows that there is still some selling pressure but it’s declining with the increased buying pressure as shown by the rise in volume.
Outlook: There should be very bullish sentiment toward this stock in the coming week, resulting in a good move to the upside on increased volume.
