originally published Wednesday, February 12, 2020

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Blockchain Holdings is believed to be at the point of breakout from a base. On its 16-month chart we can see how, after it started trading late in 2018, it spiked higher before reversing into a bearmarket that in effect ended last October, although the low then wasn’t lower than the low in January 2019. Since October it has drifted sideways marking out a low base, but what is most interesting about the period from last October is that it has been characterized by a number of big volume up days that have driven the Accumulation line steadily higher. This is definitely bullish and viewed as a strong indication that the price is destined to break out of this base before much longer into a bullmarket.

On the 10-month chart we can see recent action in more detail and in particular how the confluence of the price and its moving averages is creating a potent setup that makes a breakout to the upside much more likely soon. Thus it is interesting to observe how the price ran at the resistance at the upper boundary of the base on strong volume a few days back, and has since consolidated in what looks like a tiny Flag pattern with volume dropping back in a satisfactory manner. This action suggests that breakout from the base pattern into a new bullmarket is imminent, and the stock is therefore rated an immediate strong speculative buy.

Blockchain Holdings website

Blockchain Holdings Ltd, BCX.CSE, closed at C$0.30 on 11th February 20.

Posted at 6.20 am EST on 12th February 20.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.