FibMaster
01-27-2009, 11:45 AM
Toronto exchange, stock symbol UUU-TO (Uranium One Inc).
I'm reviewing this chart in response to a request from a trader.
The monthly chart clearly shows a huge drop from 18.65 in 2007, to a bottom in 2008 to .60
The weekly chart shows the blue down-trend line breaking at the end of December 2008 with a significant rally. This doesn't mean a long-term rally is under way, but certainly the chart looks stronger than the past two years.
The monthly and weekly trends were down, but have now both crossed up (TRSI oscillator at the bottom of the chart). This is a positive indication, though there is some resistance on the chart that can get in the way of the bulls.
The 2009 rally is more evident on the daily chart moving from the extreme low of $0.60 to a recent high of $2.35 . This chart shows great potential for buyers who could position themselves on dips (retracements) and take profits on rallies. I've added a green tren-line to show the recent rally visually.
There is some Fibonacci resistance at about $2.50, and a (potentially) stronger level up at $3.30 . Traders should be careful about buying near those levels, and should consider those as possible profit targets.
The further the rally goes, the stronger the chart looks! If it can blast through those resistance levels with momentum, it would bode well for the longer term. Until then, it's best to treat long trades as near-term, and watch the resistance levels as potential exit points.
I'm reviewing this chart in response to a request from a trader.
The monthly chart clearly shows a huge drop from 18.65 in 2007, to a bottom in 2008 to .60
The weekly chart shows the blue down-trend line breaking at the end of December 2008 with a significant rally. This doesn't mean a long-term rally is under way, but certainly the chart looks stronger than the past two years.
The monthly and weekly trends were down, but have now both crossed up (TRSI oscillator at the bottom of the chart). This is a positive indication, though there is some resistance on the chart that can get in the way of the bulls.
The 2009 rally is more evident on the daily chart moving from the extreme low of $0.60 to a recent high of $2.35 . This chart shows great potential for buyers who could position themselves on dips (retracements) and take profits on rallies. I've added a green tren-line to show the recent rally visually.
There is some Fibonacci resistance at about $2.50, and a (potentially) stronger level up at $3.30 . Traders should be careful about buying near those levels, and should consider those as possible profit targets.
The further the rally goes, the stronger the chart looks! If it can blast through those resistance levels with momentum, it would bode well for the longer term. Until then, it's best to treat long trades as near-term, and watch the resistance levels as potential exit points.