Stop Loss

Saracen Mineral Holdings Limited

November 26, 2019 - 3 months ago
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Action Buy
Term 30 Days
Called At $3.02
Target $3.28
Current Price N/A
Performance -5.00%

Technical outlook – Technically, things are starting to look exciting for Saracen Mineral Holdings Limited (SAR) as we expect this share is in the midst of a potential short-term reversal from the current downtrend, due to the bullish divergence given from the 3-day lookback Relative Strength Index (RSI).

Traders can take advantage of divergence by using a variety of trend-based strategies.

Divergence is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.

In technical analysis, divergence can be a significant warning signal that a bullish or bearish trend is coming near to an end.

Divergence appears when a technical indicator (oscillator) begins to establish a trend that disagrees with the actual price movement.

These “disagreements” are strong signals and somewhat useful for the trader/investor.  

Bullish divergence occurs when the price of an asset makes a new low while the indicator starts to climb.

If this pattern plays out in accordance to the bullish divergence (as we expect), then we could see this share advance to $3.22 to 3.28. Reassess from there.

Company Overview – Saracen Mineral Holdings Limited (SAR) is an ASX 200 listed gold mining company with an annual production of over 300,000ozpa, with growing cash flows (forecast all-in sustaining the cost of less than A$1,075/oz).

Saracen’s production comes from two WA projects, Carosue Dam Operation and its Thunderbox Operation. Both operations have long lives with extensive potential for further growth through exploration. Former Names: Central West Media Ltd (CWM), 05/08/1997.

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