BullMarketRun discovered Sidon International Resources (SD, TSX-V) about a month ago when it was trading at a nickel. Two things jumped out at us with regard to this stock: 1) The incredible accumulation; and (2) Sidon’s push into Tanzania and its deal to acquire 80% of the highly prospective Morogoro East Gold Property. After speaking at length with the geologist who discovered this property, we quickly added Sidon to the BMR portfolio and it has not disappointed us.

We will have more on the fundamentals regarding this stock by tomorrow morning. Right now we’re going to look at the amazing technical strength ofSidon.

This company’s chart speaks volumes about the potential of Sidon’s pending Tanzanian acquisition and what’s likely in store for this stock in the weeks and months ahead.

Approximately 70 million Sidon shares have changed hands over the last 29 trading sessions – almost a complete turnover of the stock which has 77 million shares currently outstanding. We’ve seen this before, though not very often, and this kind of volume breakout on a stock – historically unprecedented for this company – is typically followed at some point by a huge price move. We saw the same thing in Gold Bullion last December and January – an unprecedented spike in volume for that stock, in conjunction with a modest price increase, followed later by a massive move in the share price. We can’t help but conclude the same thing is going to occur with Sidon.

John, BMR’s technical analyst, offers some shorter-term insight on Sidon this morning:

All indicators are in agreement for a good run for Sidon.

John: Sidon in the last 3 trading days jumped from a low of 5.5 cents to a high of 9 cents and closed the week at 8 cents.

Looking at the chart, we see that the rise was orderly with high volumes each day.

The RSI is climbing, showing strength in this move up.

The Slow Stochastics indicator shows the %K (black line) above the %D (red line) and both are climbing. This is bullish.

The ADX trend strength indicator shows the ADX (black line) trend strength is low at the moment because the move up is only 3 days old. It is rising, however, indicating the trend strength is increasing. The +DI (green line) is above the -DI (red line), giving us a bullish signal – the trend is indeed strengthening.

The next Fibonacci target is 10 cents (blue horizontal lines) which could very easily be reached in the coming week.

Outlook: The chart shows that the stock price should rise significantly in the near term with all indicators in agreement for a good run.