Monday, August 26, 2013

First Resources ($1.72) - Early signs of a base

Prices are hovering around a three-times-tested support at $1.68. Quarterly momentum has been stuck beneath its equilibrium line for the better part of this year, and prices are entrenched beneath their moving averages. On the other hand, 21-day RSI has started to display a positive divergence with price.

This may trigger a rebound, which would meet with resistance at $1.78. If prices can hold above $1.65 for the next few weeks, the counter could start to build a base.

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