Scythian is looking more attractive now than when we went for it several weeks back on the 13th October
at a slightly higher price. On the latest 4-month chart shown below we can see why – it has since been marking out what looks like an intermediate base above its rising 200-day moving average, momentum has improved with the MACD rising above its moving average and its histogram just in positive territory and volume has eased, especially downside volume, with the exception of what looks like a “cross” trade several days back on big record volume. These cross trades often occur ahead of a run up, so this is regarded as a bullish sign. Taking all this into consideration and the 50-day moving average dropping down close to the price, it is believed to be getting ready to break to the upside, and we therefore thought to be at a good point to buy here, or buy more, and a stop may be placed either at C$4.18, or below all of the support at C$3.95 just in case this interpretation is proven incorrect. Given what this company is working on it could end up being outstandingly successful.
Scythian Biosciences website
Scythian Biosciences Corp SCYB.V, closed at C$4.48, $3.34 on EDT on 3rd November 17.
Posted at 6.00 pm EDT on 4th November 17.