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 March 9 2006
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| STOCK: GRAYD RESOURCES CORP (GYD) |
WEBSITE: www.grayd.com |
| CURRENT PRICE: 1.33 |
TREND: SHORT TERM UP, LONG TERM CONFIRMATION REQUIRED |
| 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 Company has been along for the impressive resource based bull run here, and the charts are looking favorable from short term perspective, with the long end requiring some further confirmation. Taking a look at the long term chart, you can see two major price levels where the stock has tested, and may test soon. First of all, the stock went through a massive sell off, only to recover nicely, signaling strong interest in the stock, and left some scared investors wondering why they sold (and those may come back and push the stock even higher). The resistance on this stock is fairly weak, and the current price is approaching this level of $1.60. The indicators are mixed at the bottom of the chart. The money flows have been very positive, and continue to be, where as the MACD is showing signs of continued weakness after a massive run up in the stock. Watch the MACD closely to see if it breaks down. On the short term chart, you can see the roller coaster ride the stock went through yesterday, with is bouncing off support, and also holding onto the key 50 day average level. The close off the lows was extremely impressive, with an over 40% gain off of that level, signaling a strong move forward may be in the works. The RSI seems like its rebounding off oversold levels, and the MACD isn’t sure if it wants to head up or down yet, and this should be monitored closely as well. If the MACD turns up here, and the price can move through resistance, the stock should propel much higher from here. Notice, all resource based stocks were down over the course of a few trading days, and this may have scared many retail investors, so watch the indicators closely, because things may head higher here for this sector of the market.
Overall, things are looking fairly good here on the short end of things. A break out is likely here, if the MACD can start treading up and a continued run occurs from yesterdays action.
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