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| New Technical Analysis on VTIFF / TSX V VTI |
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 Hot Stock to Watch |
Company: Valdor Technology International Inc. (Pink Sheets: VTIFF) (TSX-V: VTI)
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Last:
Price: 0.1125
Change (%): + 0.00 (0.00)
Volume: 0 |
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Last:
Price: 0.13
Change (%): + 0.00 (0.00)
Volume: 23,800 |
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POINTS
- A golden cross occurs when a moving average such as the 10-day average breaks up through an average of longer duration (in this case the 100-day average). This is generally considered the start of a bull market in the stock or index. Minor penetrations can abort but once the stock or index stays above the cross level for several days then the trend is set. In the case of VTI the average gain after a significant cross has been about 43%. Valdor is at the early stages of such a golden cross. The possibility of an aborted cross exists but the generally improved TSX-V, the very positive fundamentals of VTI, the excellent chart pattern for VTI and the fact that a significant golden cross is due, all point to a continuing upward move. A similar 43% rise would have the stock trading above 0.16 dollars as a minimum. It is an important fact that the 43% average up move occurred in a bear market environment. If we are in the early stages of a bull market for the TSX-V then these percentage moves can be far greater.
- The duration of the Valdor up moves have averaged about 9 months, from deginning to death cross. A death cross means that a shorter term moving average falls below a longer term moving average. This is often the beginning of a bear market in the stock or index. Death cross values usually start well above the golden cross levels. Golden and death crosses indicate a major reversal in trend for stocks or indices.
- A spike in daily average volume usually signals the start of a golden cross move and another spike usually signals the top of the upward move. Note the spike in volume around the middle of March 2014 and the price has surged upwards through the two moving averages.
- Golden crosses in Valdor on average occur every 9 months or so. The last one occurred about one year ago, so one is now overdue.
- The stock price often will push upwards through the golden cross value then correct back to that level. The cross value of 0.1125 dollars was breached and VTI went to 0.135 dollars initially and then traded at 0.115 dollar days later. The price has returned to 0.13 dollars and that is a good sign. The initial upward cross brings out some sellers, who are weak stock holders, and they are anxious to convert to cash. A strong move overcomes that selling pressure and it appears VTI has weathered that storm. The breakout price of 0.1125 dollars has changed from a resistance level to a support level.
- Note the four charts below. The first is a one year VTI chart and the second a three year VTI chart. The next two charts are one year and three year TSX-V charts.
- Another good sign is that the offers (asks) on the stock have been decreasing recently, indicating that the sellers are getting exhausted. There are less than 200,000 shares showing offered. This usually leads to a stock price appreciation. See the table at the end of this document.
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