A little TA from BMR looks goodGold Bullion Development (
GBB, TSX-V) dropped below its 20-day moving average (SMA) for the first time in a month during the trading day yesterday and then abruptly reversed – the exact same event occurred April 8, just before the stock made an explosive move to the upside. So we’ll be watching
GBB closely today for confirmation of an important technical event known as a “hammer reversal”. The stock has closed down three days in a row, due to general overall market weakness, and over the past two months that has consistently proven to be a strategic entry point for traders.
BMR’s Technical Analyst takes a brief look at
Gold Bullion John: Gold Bullion ended the day on a positive note yesterday with a “hammer”. This has to be confirmed today with a “white candle” but could be the bottom of this retracement. The stock price fell through the Fibonacci support levels of 35 to 37 cents and found support at 35.5 cents on relatively light volume and climbed back to finish the day at 36.5 cents.
The RSI has fallen to the 49% level but has flattened out, a bullish sign.
The Slow Stochastics indicator is going down but is not in the oversold region.
The ADX trend indicator is still in bullish orientation but the ADX trend strength line shows a small sign of weakening.
Today could be a relatively strong day for GBB.