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Sunday, April 10, 2011 1:08:44 PM
I'm really liking the looks of AUMN both fundamentally and technically. This has been on my watch list for several months (thanks to gsfl), and after this week's move (Friday in particular), I've got a strong buy signal on it. Actually Friday was the buy signal (and there were many other buy signals prior), I'm just a day late because I was distracted elsewhere.
I wish I was charting this one closer a couple weeks ago because there was a beautiful reversal set up just after AUMN hit the recent low of $17.69. The price bounced off the ascending 200MA with small indecisive candles and issued a small bullish hammer/doji that breached the lower bollie while full stochastics was in an oversold condition (STO < 20). This is one of my favorite and most reliable TA reversal plays and is exactly what happened in SFMI last week.
In addition, there was a MACD crossover and then a subsequent 10MA over 20MA crossover as well to confirm the reversal. Right now it is definitely a technical buy, and I'm sure you guys would agree it has been a fundamental buy for 6 months or more.
On Friday it broke above the longer descending consolidation channel and then closed back within it. I think if it breaks that again on Mon/Tue, it should run to the upper 20s in short order as the channels I've drawn seem to indicate.
I also love how the share price is now using the ascending 50MA as a support line. I'll probably be a buyer tomorrow when the opportunity presents itself.
I wish I was charting this one closer a couple weeks ago because there was a beautiful reversal set up just after AUMN hit the recent low of $17.69. The price bounced off the ascending 200MA with small indecisive candles and issued a small bullish hammer/doji that breached the lower bollie while full stochastics was in an oversold condition (STO < 20). This is one of my favorite and most reliable TA reversal plays and is exactly what happened in SFMI last week.
In addition, there was a MACD crossover and then a subsequent 10MA over 20MA crossover as well to confirm the reversal. Right now it is definitely a technical buy, and I'm sure you guys would agree it has been a fundamental buy for 6 months or more.
On Friday it broke above the longer descending consolidation channel and then closed back within it. I think if it breaks that again on Mon/Tue, it should run to the upper 20s in short order as the channels I've drawn seem to indicate.
I also love how the share price is now using the ascending 50MA as a support line. I'll probably be a buyer tomorrow when the opportunity presents itself.
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