NAN.V Technical Analysis & Comments Technical Analysis Comments
A North America Nickel chart of one year of daily data from November 2012 to late October 2013.
With a few moving averages and indicators used. The most reliable ones are the 200 and 50 day Exponential Moving Averages, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicators. The RSI + MACD combo give reliable buy/sell signals, and we look for crossovers of the two moving averages to signal trend reversals.
The stock was mainly in a flat-line trading range from November to June. The range had boundaries of a high of $0.18 and a low of $0.12. There was a bearish crossover of the 50/200 EMAs in early November which usually foreshadows a decline but the RSI hovered close to the “50” neutral line, and so the trading range began without a major reversal in trend.
June 2013 saw a major swing to the upside as the stock broke out of its eight month trading range to make a new high of $0.225 and thus breaking above the primary trend (200 day EMA) and began a new two and a half month higher trading range ($0.165 to $0.225). There also was a very bullish formation that occurred known as the “Golden Crossover” as the 50 day EMA popped above the 200 day EMA, a major positive technical event.
The pent-up demand saw a huge spike upwards to $0.38 in late August and a continuation move to the high of $0.47 in September. As can be seen by the RSI indicator, when there are overbought conditions that arise some back-filling is to be expected (yellow shaded areas).
In the ensuing months into October there has been such a consolidation after such a strong move upwards. However the stock is finding support at the $0.32 - $0.34 level as depicted by the rising support line on the chart. The RSI near 50 and the MACD above the “0” line are both good signs.
In Conclusion: The stock remains in a fairly strong technical position. Consolidations are normal after sharp bursts. The stock is finding support at the 50 day EMA and is way above the Primary Trend (200 day EMA). The stock should be able to resume its upward bias in the months to come.
https://www.barchart.com/quotes/stocks/NAN.VN