Midas

Evening everyone,

This is a request from a fellow reader for a short analysis of Midas.

First up, I have an important price level in Midas’s chart – $0.90. This level has been a turning point for Midas on several occassions (look at blue arrows). As price is above this level, 90 cents would be a support level for now. Next, take a look at the moving averages I have on the chart. Price is currently trading below the important 200-day MA. If you have been on this site for quite some time, you will know I will develop a bearish bias towards a stock that is below the 200-day MA. So this is one bad sign I am seeing on Midas’s chart. I have drawn a downward parallel channel on the chart as well. It is not the best looking channel, as it has been violated badly once. But I tend to negate wild one-, two-day price swings when looking at patterns. Basically I am not very optimistic about Midas’s share price. With the indicators hinting to me of further downside, coupled with a bearish pattern on the price chart, I have no choice but to look for further downside in Midas for the weeks ahead.

 

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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