It has been nearly 3 months since my last post on SLR. A gold producer, SLR, is coming off a significant low in a price channel that has been in force for 3 years. Gold stocks have made something of a resurgence in the past week. If SLR rises from its current level it will be on Elliott Wave 5, which (if correct) should see price go back above $2.70 – over a 100% increase (an excellent trade if it came off).

SLR 8Oct21

23 July 2021

Following the post below SLR fell away to approach the lower boundary of the shaded price channel, a point from where it could be expected to rise. It did rise until a significant fall of 11% last week. I still expect price to rise but noticed there is a line of support (dashed) that suggests price could fall to $1.50 before reversing. SLR might be worth consideration if price rises back above $1.84 but if it falls to close below $1.47 that may suggest more falls ahead.

SLR 19Jul21

28 May 2021

Price has continued making higher troughs and peaks on the weekly chart. It did hit overhead resistance at $2.05 and fell back a little towards the end of the week. Assuming price moves up this coming week there is an interim target of $2.10 - $2.20. If the pullback from last week continues price has now confirmed an uptrend line which should provide support around $1.85 - from where price could be expected to move up to say $2.30

SLR 28May21

12 March 2021

Price has started to move up from the lower boundary of a price channel and in the past SLR has risen strongly when it reverses trend like this. No target, but Elliott Wave theory suggests price will move up consistently to rise above the 2020 high of $2.70. A long term hold potential. Potential resistance exists at $2.10

SLR 12Mar21

29 January 2021

SLR has been in decline since the end of July last year and has now reached the lower boundary of a probable price channel which could be expected to turn price up. As always, a change of trend needs to be confirmed. SLR is quite volatile and not for the ‘nervous nellies’.

 SLR 29Jan21

27 August 2020

SLR – Will it go higher?

SLR has been rising strongly but the chart suggests to me that it is about time for an Elliott Wave 4 to come into play given Fibonacci extensions of Wave 1. As a falling wave this would see prices fall to perhaps $1.50 - $1.80 (depending on how steep the fall is – continuation of current momentum supports $1.50) before rising to ultimately make a new high somewhere north of $2.80

A channel can be drawn up the rising prices that also suggests price might have recently reversed of the upper boundary of that channel. If right I’d suspect the $1.50 - $1.80 fall is confirmed by that being the lower boundary of said channel. The last price cycle’s W4 fell 40% and if repeated, that would also confirm a target of around $1.50

At this time I can’t see any long-term exit signal but if it falls to close lower than yesterday’s close which was at support on $2.10, then the stock has made a lower low and the next stop down could be $1.80.

On the daily chart there are exit signals a plenty. Huge bearish engulfing candle made the high on the upper channel boundary and price made a lower low at $2.51 where a short-term trader might have closed out. Current price action suggests price falling to around $1.86

Charting always has alternatives and with SLR I can see an argument that yesterdays close at $2.10 could be a bottom and price will rise up again – for a time. A material pullback is due so any rise might be short-lived.

If a long-term holder I would not be pushing the panic button. If a short-term trader I would not be in the trade and I would not be considering buying until the chart suggested it. I would be keeping my powder dry for a turn up post the channel bottom.  

SLR 27Aug2020

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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