Dona Ferentes
A little bit OC⚡DC
- Joined
- 11 January 2016
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Kerry Sun in Market Index - Evening Wrap
First up is RED. At a $1.4 billion market cap it's hardly a minnow, and with forecast FY 2024 production of 195-215koz from its King of the Hill operation near Leonora in WA's gold belt, its hardly a minnow in terms of annual production, either.
That's not why I'm interested, though. You know I just like the chart! Bottom left-top-right tells me there's plenty of excess demand. This is what I call a 'continuation setup'.
In this setup I trust those with cash know what they're doing by hoovering up shares - even if it means having to obtain them at even higher prices. Just as trustworthy are those shareholders, or lack thereof, who are selling. They're also likely in the know of RED's fundamental checkmarks, and this is why they're so clearly hanging on for more.
Trends, price action, candles, and a lack of overhead historical supply equals a healthy technical picture. The short term trend remains up as long as the price continues to close above the historical point of demand at $0.33.
Red 5 (ASX: RED)
An solid example of a 'continuation' setup
A couple of gold stocks in today's ChartWatch for obvious reasons: Look where the strength is I always say! In recent Evening Wraps we've investigated larger capitalisation ASX gold stocks, so this time around I thought I'd look at two near the smaller end of the curve.First up is RED. At a $1.4 billion market cap it's hardly a minnow, and with forecast FY 2024 production of 195-215koz from its King of the Hill operation near Leonora in WA's gold belt, its hardly a minnow in terms of annual production, either.
That's not why I'm interested, though. You know I just like the chart! Bottom left-top-right tells me there's plenty of excess demand. This is what I call a 'continuation setup'.
In this setup I trust those with cash know what they're doing by hoovering up shares - even if it means having to obtain them at even higher prices. Just as trustworthy are those shareholders, or lack thereof, who are selling. They're also likely in the know of RED's fundamental checkmarks, and this is why they're so clearly hanging on for more.
Trends, price action, candles, and a lack of overhead historical supply equals a healthy technical picture. The short term trend remains up as long as the price continues to close above the historical point of demand at $0.33.