Silverado 'Daily' Chart Sept 7, 2012

Allot of good things technically speaking have been happening on the 'Daily' chart for Silverado Gold Mines LTD

For more than a year, the chart was turned complete upside-down, primarly by the shorts, acording to short sale figures from the "Short Seller Report" website. Technically speaking when a chart is turned upside down, it signals the death of a company, making it harder for a company to raise money from the stock market, BUT, since the first week of Aug, as noted on the chart below, the 20 Day Moving Average (DMA) Green Line started its march north, first crossing the 50 (DMA) Blue Line and then crossing the 200 (DMA) Red Line, and has moved higher through this past week.

When the 20 (DMA) Line moved above the 200 (DMA) Line, this is called "The Golden Cross" which signals the first step to technical turning the chart right side up.

The second "Golden Cross" is the last major event, when the 50 (DMA) line crosses above the 200 (DMA) line. At that time, the chart will be turned completely right side up

Big investors are more willing to buy a stock, when the chart is turned right side up. The 20 (DMA) will be at the top of the chart, with the 50 (DMA) in the center, and the 200 (DMA) at the bottom.

As noted on the chart below, the 20 (DMA) Green Line appears to be the new support for the share price as it moves higher

As you can see from the chart, the 50 (DMA) Blue Line is sitting @ .00015 just one step away from sharing the same point with the 200 (MDA) Line @ .0016 Depending on how fast the share price moves north, the last final "Golden Cross" could happen in a short time, within a week or two ?

Please note,
The 20 (DMA) Green Line is now @ .0021
The 200 (DMA) Red Line is now @ .0016
The 50 (DMA) Blue Line is now @ .0015

The MACD technical indicator at the bottom of the chart, has been trending upward since the first of August

The stock price rallied from .0008 to .003 on the chart, hitting another resistance point, the (RSI) Relative Strength Indicator, at that time, showed the share price as over bought @ 72.28 before the Fibinnacii Retracement kicked in to take the price back down to bounce between .0013 and .0014 to fill the gap this past week, the (RSI) is now sitting @ 67.73 below the threshold of over bought territory of 70 to 90. As of Friday it appears that the share price has broked out of the consolidation period to continue the march up the chart.

Lets see what next week will bring !!

Click on link to review Silverado chart: http://www.freeimagehosting.net/c2s1e

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