Medinah Minerals (MDMN)

[Hurricane_Rick]

MDMN Week in Review 1/17/2014.

Fundamental Analysis:

There were no developments from a fundamental standpoint, though expectations were high for a news release coming out of Chile. Strong rumors persist about impending news of the ADL joint venture which really could occur at any time right now. As some have pointed out, there appears to be a multi-step process involved in finalizing the JV at this point. The first step being a contractual sign-off between MMC and the potentail JV partner presumably at the JV partner's location. Whether this step brings about an announcement or not is anybody's guess at this point. The second step is a trip to the notario's office in Santiago for signatures among parties there. I believe two signatures are required from MMC which would necessitate LP to sign. Shareholders have been told that LP does not have to be in Chile to sign - he could sign through the Chilean consulate in Vancouver. Regardless, it is believed that LP will be traveling to Chile to execute this process, so that puts shareholders back into the "Where's Waldo?" game.

Technical Analysis:

Trading this week was a very strong from a technical perspective. The stock finished up 17.5% closing at .0575 on higher than normal volume of 14.1 million shares. That was the most volume the stock has traded in a week since October. As indicated in the chart, the share price broke out of a shorter descending channel which currently represents a bullish flag continuation pattern as I've noted in previous week's analyses. The bullish flag is part of the larger 1-2-3 bottom reversal trend that we see developing with each passing week. The breakout from the channel is the 2nd to last pivotal technical events comprising the 1-2-3 pattern - the final pivotal moment being a breakout above the .0709 high at point 2 in the 1-2-3 pattern.

Coterminous with this bullish channel/flag breakout, the chart issued and confirmed a buy signal (represented in the vertical green dotted lines) with both the oversold stochastics and oversold MACD crossing over. The MACD parameters I use (5,14,9) are a bit faster than traditional MACD settings, so my charts issue buy and sell signals slightly ahead of time. As I pointed out last week, this marked an excellent low risk / high probability setup for taking or adding to a position, particularly with the fundamental backdrop of the ADL JV in the offing. In addition the previous 3 dojis, particularly last week's dragonfly doji all portended a breakout to the upside was at hand.

All of this occurred with an uptick in volume which adds a greater degree of confidence to the strength in this move.

Looking Ahead:

Not much to say here...all eyes are on the news alerts either from OTC Markets, Chile, Peru (as long rumored) or the MDMN website. Keep in mind that Monday is a US holiday and the stock market is closed. Whether that effects the news cycle outside of the US is debatable. Regardless, look for the game of "Where's Waldo?" to continue and see if the stock can maintain its upward trajectory with equal or increasing volume.