We take a close look at the technical chart for Wallbridge Mining (WM.TO), a small gold stock, to see how it behaves after it fails to find support at a key long term internal support/resistance level. Then, we show you why and how it became a winning trade.
You will recall in chart educational segment 001, we took an in depth look at the weekly chart for gold. Our expectation is for the MACD signal line to dip below the trigger line and then re-cross it later next year. This will be our buy signal based on trend settings. So let’s look at an example where this has just happened.