Our analysis is based on long term trends, and if they are promissing, short term analysis. First, we view the
3 year weekly charts, followed by a 1 year daily chart. This analysis allows you to view the larger picture and trend,
rather than just looking at a short term prospective. This way, you can use short term volatilty to your advantage, if the
long term trend is positive.
You will see a summery of the stock we are analyzing, followed by the 3 year and 1 year charts. At the end, you will see a technical analysis summery. That's it,
to the point technical stock market analysis daily!
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Technical Analysis for February 20 2006
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| STOCK: CASSIDY GOLD (CDY) |
WEBSITE: www.cassidygold.com |
| CURRENT PRICE: 0.65 |
TREND: POSSIBLE BREAKOUT |
| TARGET PRICE: N/A |
RECOMMENDATION: SPECULATIVE BUY |
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Long Term Chart (Weekly 3yr) - To view the bigger picture
Charts Courtesy of StockCharts.com
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Short Term Chart (Daily 1yr) - Where to take a position
Charts Courtesy of StockCharts.com
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This Canadian gold company may be ready to make a move in the near future judging from the patterns developing on the charts. On the long term chart, you can see the price getting close its resistance level of about $0.75, with it closing near the highs of the past few weeks. The increasing money flows are also evident, and provide further support for a possible break about the resistance level. The other positive signal is the MACD, which is treading higher here as well. On the short term chart, there are also many positive signs showing up. First, the price is considerably above its 50 and 200 day moving averages, and recently came close but never broke through either average. Secondly, the chart is forming higher lows, and is forming an ascending triangle as it approaches its resistance level. And lastly, the MACD has formed higher lows three time, and is looking to finally break into positive territory here.
Bottom line, things are looking fairly positive here. The stock should break out, but confirmation is still required. You can nibble a bit here and wait for a further signal, or wait until it breaks out of its resistance level.
As a side note, you may want to take a look at TM BIOSCIENCE which was reviewed back in January. We were a little early on the call, but the charts are looking very bullish here. Click here to view the prior analysis.
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