Message: Silverado - The Chart is Looking UP!!!
| Written by Matt Blackman |
| Wednesday, 31 October 2007 |
|
Silverado
The Chart is Looking UpBy Matt Blackman No matter what your approach to stock analysis, one thing is clear. Nothing is a better leading indicator than stock price to the trader. They may have a point. How many times have you noticed that by the time you get a company release announcing positive earnings news, it is already reflected in the stock price? Call it the wisdom of the market. For this reason, technical traders and analysts prefer to let the price of a stock do the talking. Directional cues are provided by price patterns that like footprints on the trail to the eye of a trained tracker, impart valuable clues about what may lie ahead.Silverado (OTCBB - SLGLF) had a good run when it surged more than 220% last October from $0.049 to $0.157 in April 2007. It then spent the next five months jigging lower before putting in a bottom of $0.067 in August. Since then however, the stock has been pushing slowly but steadily higher. In the process, it put in a price-volume support base between $0.07 and $0.08 together with a series of higher lows and higher highs that indicate an up trend. This base occurred on lower than average volume which while typical of a consolidation pattern, has positive technical implications for the stock. Over the last 50 days, daily volume has averaged 2.4 million shares. This compares to an average daily volume of 6.2 million shares in early March as the stock approached its April peak.  Figure 1 – Daily chart of Silverado showing bottoming of the stock at $0.067 in August 2007 and recent uptrend through October. Trend line (blue) shows the low in October 2006 and support in August through October 2007. Positives include strong-price volume support between $0.07 and $0.08 (blue and magenta lines) and a bullish catapult or ‘W’ pattern (orange) that began forming in late July 2007. Chart provided by TradeStation.com
According to the latest data on short sales from Buyins.net, the October monthly SqueezeTrigger price (average price at which shorter traders sold the stock) was $0.0762. As the stock moves above this price, motivation to buy the stock by short sellers to cover their positions increases, thereby providing further upward price pressure. As the price approaches the long-term SqueezeTrigger price of $0.099, there will be increasing pressure on short sellers to cover. A short squeeze is said to occur when buying pressure increases during a rally in effect ‘squeezing’ short sellers to pay increasingly higher prices to close and exit their positions. While bad news for shorts, it provides extra lift to stock price. For more information on the SqueezeTrigger please refer to the Buyins.net October 31, 2007 Silverado report at http://www.buyins.net/press/squeezet... or http://tinyurl.com/2uej9v
In the process of recovering, the stock is also putting in what technicians call a bullish ‘W’ or catapult pattern. In essence, this is a zigzag pattern in which the stock moves higher in stairstep-like fashion (see Figure 1). Another positive indication is that the lows in the W pattern are supported by the positive trend line (blue line in Figure 1). A steady increase in volume on price rises would be confirmation that the trend is gaining momentum. In summary, there are both price and volume indications that buyers are buying SLGLF. From a technical perspective, caution and an exit of the stock should be considered if the stock were to break price-volume support at $0.07 on heavy volume. About Silverado Silverado is an international company focused on gold and a new environmentally friendly fuel technology. Silverado has gold properties located throughout Alaska which include the 100% owned Nolan Placer Gold Mine. Silverado is also entering the construction phase of an environmentally friendly low cost strategic fuel demonstration facility. Silverado's Green Fuel will be produced from low-rank coal and turned into a environmentally friendly oil substitute. Silverado Green Fuel Inc. is a wholly owned subsidiary of its publicly traded parent, Silverado Gold Mines Ltd. For more information about Silverado Green Fuel Inc., please visit http://www.silveradogreenfuel.com and the parent public corporation, http://www.silverado.com. About TradeSystemGuru.com TradeSystemGuru.com is a website for traders and investors devoted to helping them discover and better utilize tools, trading techniques and cutting-edige market data and information. TradeSystemGuru.com also publishes a weekly stock market newsletter which is available free by signing up from the home page at http://www.TradeSystemGuru.com The goal of TradeSystemGuru.com is to help traders and investors remove the emotion when making buying and selling decisions through the use of pre-defined rules. It also helps them combine technical analysis with traditional fundamental approaches in their effort to make better informed market decisions. As well as cutting-edge articles, TradeSystemGuru.com contains interviews, product reviews and market analyses. It also offers a service to public companies wishing to alert, educate and update investors regarding the technical performance of their stock. All material herein was prepared by TRADESYSTEMGURU.COM, based upon information believed to be reliable. The information contained herein is not guaranteed by TRADESYSTEMGURU.COM to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. SCC Management, Corp. paid $500.00 to produce this report on behalf of Silverado Gold Mines and/or Silverado Green Fuel Inc. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. TRADESYSTEMGURU.COM is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. TRADESYSTEMGURU.COM does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment of the market. TRADESYSTEMGURU.COM and/or its owners do not own shares in Silverado. TRADESYSTEMGURU.COM is intended for use by stock market professionals. As a member, visitor, or user of any kind, you accept full responsibilities for your investment and trading actions. The contents of TRADESYSTEMGURU.COM, including but not limited to all implied or expressed views, opinions, teachings, data, graphs, opinions, or otherwise are not predictions, warranty, or endorsements of any kind. Please seek stock market advice from the proper securities professional, or investment advisor. By visiting TRADESYSTEMGURU.COM or using any data or services, you agree to assume full responsibility for the decisions or actions that you undertake. TRADESYSTEMGURU.COM, its owner(s), operators, employees, partners, affiliates, advertisers, information providers and any other associated person or entity, shall under no circumstances be held liable to the user and/or any third party for loss or damages of any kind, including but not limited to trading losses, lost trading opportunity, direct, indirect, consequential, special, incidental, or punitive damages. As a user, you agree that any damages collected shall not exceed the amount paid to TRADESYSTEMGURU.COM and/or its owners. As a website user, you agree that any and all legal matters of any kind are to be reviewed and handled in their entirety within the Province of British Columbia only. By using the services of this website, you are consenting to the terms as outlined, and forfeit all legal jurisdictions in any other State or Province. Past performance is not a guarantee of future outcomes. Any and all examples are hypothetical and should not be considered a guarantee or endorsement of such trading activity. TRADESYSTEMGURU.COM does not take responsibility for problems of any kind, including but not limited to issues with operations, data accuracy or completeness, contacting issues, technical issues, and timeliness. TRADESYSTEMGURU.COM places great integrity on the data collected and distributed. This information is deemed reliable, but not guaranteed. All information and data is provided "as is" without warranty or guarantee of any kind. Please seek investment and/or trading advice, council, information or services from a securities professional. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and TRADESYSTEMGURU.COM undertakes no obligation to update such statements. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC. For more information on this report or with technical charting questions contact: Matt Blackman matt@tradesystemguru.com This e-mail address is being protected from spam bots, you need JavaScript enabled to view it 604-909-2515 |
New Message
Please
login
to post a reply