MEK.V July 21-22, 2014: Six Bullish Technical EventsMetals Creek Resources Corp
(MEK:TSXV)
Event Details for: Bullish Momentum
Tells Me: For bullish events, upward momentum has just built up with the latest price now trading higher than the price 10 bars ago. The opposite is true for bearish events where we're seeing downward momentum now that the price is trading lower than 10 bars ago. Momentum measures the velocity of price changes. For a 10-bar momentum, we take the difference between the last bar's close and the close 10 bars ago and we plot this as a line fluctuating above and below 0 which can be used as buy and sell signals when in agreement with prevailing trend analysis. Momentum is significant because it signals the strength of price trends. A healthy price trend tends to exhibit strong momentum, while weakening trends often have decreasing momentum indicating a trend reversal or correction. |
| Event Date: | Jul 22, 2014 | | Opportunity Type: | Short-Term Bullish | | Close Price: | $0.04 | | | Price Period: | Daily | | Volume: | 28,000 | | The Momentum has moved above 0. | |
Metals Creek Resources Corp
(MEK:TSXV)
Event Details for: Bullish 21-Day Moving Average Price Cross
| Tells Me: The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average period (21, 50 or 200 bars). Moving averages are used to smooth out the volatility or "noise" in the price series, to make it easier to discover the underlying trend. By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. A bullish event is generated when the price crosses above the moving average, and in this state, the price is likely in an established uptrend. The opposite is true when the price crosses below the moving average, triggered a bearish event. |
| Event Date: | Jul 22, 2014 | | Opportunity Type: | Short-Term Bullish | | Close Price: | $0.04 | | | Price Period: | Daily | | Volume: | 28,000 | | Price crossed above the 21-day moving average. | |
(MEK:TSXV)
Event Details for: Bullish 50-day Moving Average Price Cross
| Tells Me: The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average period (21, 50 or 200 bars). Moving averages are used to smooth out the volatility or "noise" in the price series, to make it easier to discover the underlying trend. By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. A bullish event is generated when the price crosses above the moving average, and in this state, the price is likely in an established uptrend. The opposite is true when the price crosses below the moving average, triggered a bearish event. |
| Event Date: | Jul 22, 2014 | | Opportunity Type: | Intermediate-Term Bullish | | Close Price: | $0.04 | | | Price Period: | Daily | | Volume: | 28,000 | | Price crossed above the 50-day moving average. | |
Metals Creek Resources Corp
(MEK:TSXV)
Event Details for: Bullish 200-Day Moving Average Price Cross
Tells Me: The price is generally in an established trend (bullish or bearish) for the time horizon represented by the moving average period (21, 50 or 200 bars). Moving averages are used to smooth out the volatility or "noise" in the price series, to make it easier to discover the underlying trend. By plotting the average price over the last several bars, the line is less "jerky" than plotting the actual prices. A bullish event is generated when the price crosses above the moving average, and in this state, the price is likely in an established uptrend. The opposite is true when the price crosses below the moving average, triggered a bearish event. |
| Event Date: | Jul 22, 2014 | | Opportunity Type: | Long-Term Bullish | | Close Price: | $0.04 | | | Price Period: | Daily | | Volume: | 28,000 | | Price crossed above the 200-day moving average | |
Metals Creek Resources Corp
(MEK:TSXV)
Event Details for: Bullish MACD
The MACD (Moving Average Convergence Divergence) plots the difference between a shorter-term (12-bar) and a longer-term (26-bar) exponential moving average (EMA). Bullish and bearish events are generated respectively as the MACD fluctuates above and below zero to indicate whether prices in the shorter term are stronger or weaker than the longer term average. A 9-period EMA of the MACD is overlayed as a "signal line" which smooths out the MACD to provide a clearer view of whether it's moving upward or downward. A bullish event is generated when the MACD crosses above the signal line, showing that the current MACD is actually higher than its average, a sign of increasing strength for the price. The opposite is true for bearish events which signal decreasing strength in price as the MACD crosses below the signal line showing that it's now below average. |
| Event Date: | Jul 22, 2014 | | Opportunity Type: | Short-Term Bullish | | Close Price: | $0.04 | | | Price Period: | Daily | | Volume: | 28,000 | | | |
Metals Creek Resources Corp
(MEK:TSXV)
Event Details for: Bullish Relative Strength Index (RSI)
Tells Me: For bullish events, we may be seeing higher prices as the price seems to be recovering from oversold as losses on down periods (over the last 14 bars) are no longer overwhelming gains on up periods to the same extent. The opposite is true for bearish events, which signal lower prices ahead as the price seems to be recovering from overbought bcause up days are no longer overwhelming down days to quite the same extent. RSI measures the strength of an issue compared to its recent history of price change by comparing "up" periods to "down" periods. It's based on the premise that overbought conditions tend to occur after the market has advanced for a disproportionate number of periods. The RSI fluctuates between 0 and 100 with 70 and 30 often used to indicate overbought and oversold levels, and 50 the dividing line indicating the direction of the trend. The RSI should not be confused with relative strength which compares a financial instrument it to a market index. |
| Event Date: | Jul 21, 2014 | | Opportunity Type: | Short-Term Bullish | | Close Price: | $0.03 | | | Price Period: | Daily | | Volume: | 50,000 | | The RSI moved above 30. | |