Improving Technicals on Wellgreen StockBasis WGPLF...
On the daily chart, the stock has now advanced through the 200 day moving average. The gap down that had been left on the chart due to the financing news, has been filled. The 50 day average is also just starting to curl up. The 14 period RSI still has some run way before it gets overbought. A next step would be to close above the high made in early June.
In addition, a good sign today that the stock was able to swim upstream and advance in the face of weakness in the GDXJ (which was down 2.34% and closed near its lows of the day).
More important is the developing look of the weekly chart. The stock has now moved up through the 50 week moving average. If we can stay above that level this week, it would be a great sign for the intermediate term.
It appears that the consolidation that has taken place in the aftermath of the short term blast off at the beginning of the year, could now be over. We have a possible reverse head and shoulders on the weekly chart. A great sign would be to break through the neckline of that pattern and rally back toward the early 2014 high.
That is what I will be looking for over the coming weeks. From my stand point, the improved fundamentals are coming together with improved technicals.
Note: I am not a registered investment advisor, but am long the stock (in a diversifed group of mining stocks). Please perform the necessary due diligence. Good luck all.