Medinah Minerals (MDMN)

[Hurricane_Rick]

Hi Veblen,

This was nearly the same price action we saw a year ago (almost exactly a year ago) when someone was accumulating before the breakout from the high .03s to .107 after MDMN announced that a firm offer for the ADL JV had been accepted in late April 2014.

If you recall, the share price was boxed in between .035 and .04 for a couple of months with sporadic large share blocks attributed to "whales". On LII there were large blocks supporting the bid and it seemed like an endless supply of selling any time the share price started approaching .04. While all this was going on, the chart was indicating that although there was a slowly declining share price, all of the major momentum indicators (RSI, Stochastics, MFI) were slowly rising - indicating a bullish divergence of accumulation that often precedes a trend reversal.

Then, about 2 trading days after MDMN's announcement, the sellers disappeared and it was a large buying frenzy for about 2 weeks on the way up to .10. I see the same thing happening now. And barring any unexpected news, the chart is indicating a breakout is in the near term (next couple of weeks?). Obviously I can't time something out of my control, but I can recognize the signals from the chart pattern and trading behavior enough to know when a good buying opportunity presents itself. And I have funds waiting to clear in order to add to my position.