Midas

Hello traders/investors,

I have an update on Midas for tonight. I do not like doing such posts, but a turn of events in Midas’s chart have prompted me to change my bearish view on it. First off, if you were to take a look at my previous posts, you would see that I saw a downward parallel channel that Midas has been in for the past months. Right now, I am going to have to change my trendlines and consider it as either a confirmed falling wedge pattern, or a confirmed descending triangle with an upward breakout. The difference between the previous pattern and the wedge is the bottom trendline, or the support trendline. In this wedge, the bottom does not fall as steep as the top trendline. In other words, price is in a general downtrend, and the trend strength is dropping. Sometimes I ignore certain candles on the chart as I consider them as “wild one-day price swings”. So my trendlines may cut across some candles. That was what I did in previous posts on Midas.The past two days have seen Midas breaking the top trendline on healthy volume. Looking at the chart again, I have decided to see the current pattern as a falling wedge or a descending triangle. With an upward breakout, I will have to look for Midas to hit the $1.08 region. This projection is done by taking the height of the whole pattern – from the highest point to the lowest point. A good stop level for such technical patterns would be just outside the bottom of the pattern; in this case, I will have a support level at 92 cents.

With price now above the 200-day MA, and the occurence of confirmed bullish patterns (whichever one you see it as, they are both bullish), I have to drop my bearish view on Midas straightaway. Finally, volume behaviour is good as well. During the formation of the pattern, volume was descending.

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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2 Comments

  1. Posted January 6, 2011 at 1:41 AM | Permalink | Reply

    Thank you for writing this updated analysis on Midas. Have been holding my Midas stocks and hoping to sell soon this year to consolidate my resources on a few others.

    Meanwhile I invite you to participate in a different way to help others by giving micro loans (that you will get the money back) not pure donations. Read along here. I created a group ArtOfYourMind and have made a first loan of $25USD out! It felt great!
    http://www.kiva.org/team/artofyourmind
    I invite others who are reading to join too. Have a pleasant 2011 new year.

    • Administrator
      Posted January 6, 2011 at 8:13 AM | Permalink | Reply

      Hello Denzuke,

      You are welcome. I hope for your sake it does continue higher.
      I will give your link a look too.

      Regards.

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