T A, Part 3: Valirx8 Nov 2020 20:51
I spend my Sundays looking at charts for the week ahead. Valirx is my biggest holding so this is my analysis. The chart for Valirx is beginning to look interesting.
1) CCI: Most technical analysts look for divergence on the CCI. I’m seeing a clear divergence here. Lower price action but higher highs in CCI. Bullish!
2) MCAD: Looking at MACD, I've noticed the two moving averages are touching. When this has occurred in the past, the price has moved up. Bullish!
3) Volume has been very low for the last 14 days (3 weeks). Look up "The Stock Cycle". We are in Accumulation Phase!
4) 50 MA. In the past, the longest we have stayed below the 50 DMA was 11 days and the 50 MA had flatlined. So far we are on the 13th day and the 50 DM is rising. Price actions and moving averages behave like coil springs.
5) Supply and Demand: The sellers seem exhausted. Look at this week's trades, what do you see? Someone has been accumulating! If you watched the trades on Level 2 during trading hours, many BUY trades were showing up as sells. MM are adjusting the bid and ask so that its difficult for you to see this. I normally do dummy trades to see what the actual buy/sell price is. I bought a few times and most of my trades showed up as sells (Accumulation Phase). + Positive inside weekly candle!
Breakout Level: I would like VAL to close above 28p. This will confirm a breakout of the channel on a daily and weekly chart + close above 50 DMA!
I feel this and the next week could be important two weeks for Valirx. Could be the start of something great!
Good Luck!