Technical outlook – Technically, it is anticipated that the current decline, since the unexpected gap-down price action this month, has now displayed a strong rejection and may have established a short-term base from $3.35 after posting a Dragonfly Doji from this level.
The Doji is one of the most revealing signals in Candlestick trading. The Doji, appearing at the end of an extended trend, has significant implications, in terms of that the bulls and the bears are at an equilibrium, or a state of indecisiveness, and possibly the trend may be near its end.
The Doji represent an essential type of candlestick, providing information both on their own and as components of several vital patterns. Doji(s) form when an asset pair open and close are virtually equal. The length of the upper and lower shadows can vary, with the resulting candlestick looking like a “T” shape, a cross, inverted cross or plus sign.
Viewing the daily pattern of OceanaGold Corporation Limited (OGC), the two technical indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) has not entirely constructed a potential bullish breakout yet. However, it is envisaged that this share price will pick up momentum and encounter renewed demand to strengthen prices to “fill in the gap” and views a foreseeable target at $3.70.
Company Overview – OceanaGold Corporation Limited (OGC) is a gold producer with a portfolio of operating, development and exploration assets. OGC’s assets are located on the South Island of New Zealand and in the northern Philippines. Former Names: Oceana Gold Limited (OGD), 19/06/2007.