We have traded this one well, thus far, having
sold it for a near 100% gain a little over 2 weeks ago, in expectation of a reaction, as we had spotted an “Evening Star” reversal forming, and have
waited patiently for the right moment to buy it back, as overall the charts for this stock present a very strong picture. Now that moment appears to have arrived. On its 3-month chart below, we can see that whilst it could react back further into the support shown, several factors suggest that it will turn up here or very soon. One is the extensive unwinding of the earlier heavily overbought condition, with the RSI indicator fully neutralized and the MACD histogram pointing to a snapback, another is the bullish crossover of the moving averages, but most important is the way that volume has died back from a high level to become comparatively light.
Scientific Metals
website
Don’t forget that this is a cobalt stock and cobalt is
HOT right now.
Scientific Metals Corp, STM.V, SCTFF on OTC, closed at C$0.45, $0.336 on 3rd March 17.
Posted at 12.50 am EST on 6th March 17.