A few weeks back, Michael Oliver promised me he would give me price and momentum charts for Novo. I reminded him of that a couple of days ago and I see he has sent it to me now. So here it is.
I have found Michael to be the best technical analyst I have ever followed which is why he is on my show every other week. His proprietary momentum work key. He provides some explanation along with his charts.
Jay
https://mail.google.com/mail/u/1?ui=2&ik=f502c4d7f0&attid=0.2&permmsgid=msg-a:r5365229509178412895&th=1752c07af9f57728&view=att&disp=inline&realattid=1752c078c10590f12671
What do the four peaks in price (noted
with arrows) have in common? Well,
nothing. At least not on the price chart.
But on this long-term momentum chart
(the 40-wk. avg. is comparable to using a
3-qtr. avg. or 200-day avg. as your
yardstick) those peaks exhibit a precise
feature in common. Each peaked at $1
above the 40-wk. avg. A ceiling. A
momentum structure.
MSA argues that when that +$1
oscillator level comes out with a weekly
close above it, then it will probably yield
a very strong advance/trend shift to the
upside in this stock. And given the size
or width of this base, probably a very
large move.
$1 over the current 40-wk. avg. (which is
now fairly flat in terms of week-to-week
changes in that average) is $2.316. So if
we see a weekly close soon at $3.33, let’s
say, then it’s lid off for Novo!
For the relative performance of this
mining stock, see the next page
Here we measure each monthly close of
NSRPF vs. those of GDX (VanEck Vectors
Gold Miner ETF).
After a wake-up performance surge in
mid-2017, Novo Res. pulled back in price
and in relative performance. The action
has clearly gone sideways (par
performer) since early 2019. So the
stock has found equal strength month
to month to the strength of GDX.
We can readily plot a parallel downtrend
channel that defines peaks and lows
going back to early 2018. The current action is nudging more or less sideways through that channel
resistance. We’d like to see a monthly spread close that takes out the last high along that channel top
(at the arrow). Currently the spread is at 6.66% (NSRPF’s price expressed as a percent of GDX’s). If it can
close any month at 7.58%, then we’d label NSRPF an emergent outperformer in the gold mining sector.