Technical outlook – In today’s source of information, there appears to be so much knowledge out there, and many opportunities that may get obstructed, or just too complicated!
When it comes to investing, the first thing that we do is to evaluate the broader-term pattern, and then bring it into the shorter period.
The best way to assess plausible theories is to test them (right?).
With technical analysis, we believe in keeping things simple, following the approach about the price action, which indicators you use, not deviate, and stick to them.
Viewing the potential strength to the daily pattern of TerraCom Limited (TER), the two technical indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are both signalling bullish divergence, which in terms raises the risk of a potential correction.
Divergence is probably one of the most dynamic and often 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, (bearish in this case).
It is envisaged that this share price is expected to break to the upside and stage a bull-run towards a foreseeable target of $0.44. Reassess from there.
Company Overview – TerraCom Limited (TER, formerly Guildford Coal Limited) is a new miner with a portfolio of projects in the coal-bearing regions of Mongolia, Central Asia and Queensland, Australia. TerraCom’s subsidiary in Mongolia, Terra Energy, has 2 projects located in the coal-bearing regions of the South Gobi and Middle Gobi. Former Names: Guildford Coal Limited (GUF), 18/11/2015.