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MDMN Blog provides investor due diligence and commentary regarding Medinah Minerals.
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Must Read Due Diligence
One of the more reliable signals that chartists and traders use for identifying potential trend tops and bottoms and telegraphing a high probability market turning point is divergence between share price and momentum. Momentum is commonly measured using the MACD, Stochastics and RSI indicators. What Is MFI? Another reliable, but less commonly used indicator is the Money Flow Index (MFI) which is essentially RSI with a volume-weighted component baked into the formula. MFI essentially measures buying pressure when it is rising and selling pressure when it falls. As such, when buying pressure is increasing (MFI rising), but the share price is falling, this is a divergence condition that indicates that there is stealth accumulation occurring. At some point the accumulation and buying pressure will be reflected in the share price, particularly when volume starts increasing and pushing the share price higher. Ideally the best time for investors to take advantage of this market tell of a reversal condition is when the MFI has hit an oversold condition (<20). As indicated in the daily chart annotated below, MDMN’s MFI hit oversold conditions in the first week of September. Past MFI/Price Divergence in MDMN To best illustrate the predictive properties of Price/Momentum divergence in MDMN, we can look back to last Spring when MDMN was trading down below .04. For 2 1/2 months from mid-February to late April, the share price slowly and methodically traded downward with lower lows and lower highs, much to shareholders’ chagrin. However, during that same time period, […]
AURYN Mining Chile seems to be ahead of their initially announced schedule. Per the most recent news release, the drill rigs should be on Lipangue and turning beginning the week of September 22, 2014. Here is the first drill right to be used. http://www.groupe-premium.com/wp-content/uploads/2011/12/DE710.pdf News is starting to get out into the media as SEMANAeconomica.com published a nice article about the upcoming drill program.
Per the latest news release, AURYN Mining is in the process of doing an airborne magnetics/spectrometry survey of the property. There will be a grid created that is 15 kilometers (N/S) by 10 kilometers (E/W) with a 200 meter spacing except one hundred meter spacing near the Gordon pipe. This will dwarf previous efforts.
With July 2014 in the books and MDMN’s share price closing just about at the high of the day (and the month) at .1049, the monthly candle forms a bullish technical scenario heading into August and marks the first time since October 2005 that MDMN strung together 4 straight green monthly closes. This 4-month run obviously solidifies the MDMN’s long term technical reversal as the stock logs in higher highs and higher lows coming off of the 1-2-3 Reversal Pattern that we’ve been highlighting for the past few months.