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SULLIDEN End of Consolidation
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SULLIDEN (SUE.TO) ISIN CODE : CA3019291051 LISTING : Profile : http://www.24hgold.com/InfoCompany.aspx?id=433 Since the beginning of the
year, Sulliden’s stock price settled in a wide area of consolidation
that started after a great bearish wave that took place between November,
2003 and December, 2005. During this period the price broke down 82%, a fall from 2.67 to 0.47. Volatility is still
important since 2006 and it is expressed by oscillations going from 0.78 to
0.42. But since then the annual minimums, around 0.42, have been the support
area for the last weeks, and a first important technical reaction of 34% on
June 12th came with an increase of volume and enabled the crossing
of a resistance area lying between 0.50 and 0.57. This reaction is favoured
by a positive reversal of the MACD and by an overflowing above the daily
Bollinger’s stripes.
This renewal is for now
still technical and its outcome still hanging in the balance. Its fate will
be decided as it approaches the resistance of the consolidation channel
around 0.78, a channel in which it is oscillating since the beginning of the
year. The crossing of this
threshold, which is for now my hypothesis, would confirm a positive outcome
of the period of consolidation and it would be the origin of a new bull wave
that would be the logical positive counterpart of the great bearish wave that
took place between 2003 and 2005. The first potential
objective aimed at would be at 1.13 but the possibility of an increase until
the 1.70 level of July, 2004 is to be considered.
A failure at 0.78 would
delay the development of this renewal hypothesis but only a decrease under a
support area lying between 0.49 and 0.57 would cancel this possibility. Patrick Langenberger 24hGold |
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