Silverado Gold Mine Accumulation-Distrib... Chart
posted on
Apr 02, 2009 11:24PM
You will understand better why the short sellers are begining to panic afterThe Grim Reaper expalins what he sees in the chart.
Please Note:I have constructed a chart so that everyone can clearly see the DIVERGENCE that has been forming on the Silverado chart.
The accumulation/Distribution (black) line indicator runs from the bottom left corner to the upper right hand corner of the chart, showing a steady momentum of accumulation of shares bought by savvy investors that started back over a year ago when the first Tom Bundtzen NI43-101 reports were released around April-May 2008.
Please Note that there is a HUGE DICHOTOMY building between shares accumulated/bought VS share price decline. Notice were the two paths cross in the middle of the chart forming an "X" heading in opposite directions, this is a clear indication that the short sellers have been painting the charts by pushing the price by down thru short selling the stock. This is like compressing a giant coil spring, ready to launch the Silverado share price to the moon when the panic starts for the shorts to buy shares to cover their bad bets. All it takes is one brokerage house to throw in the towel and the stampede will begin to release that coil spring.
I am fairly sure that the accumulation/distribution technical indicator is only programed to count shares physically bought and sold, and it clearly shows the momentum is in favor of the buy-side for over the past year $$$
Please Note: A major event is taken place, the 20 day moving avg. green line is now starting tp cross above the 50 day moving avg. blue line. It appears that the buyers have now taken the control away from the shorts.
Please Note; The share price has clearly broken above the 50 day moving avg. blue line; it appears that a new bullish trend is forming !! You can see that the shorts have used the 50 day moving avg. line as the ceiling-resistance level to cap the share price over the past year. It appears the shorts are quickly losing their control !!
SHORT SELLERS PAINTING THE SILVERADO CHART COULD COME AT A HUGE COST, BANKRUPTING SOME OF THE SHORTS !