Price has risen back towards the previous target of $13.50 and should it break and close confidently above that level there would be a probable target ahead of $17.00. However, $13.50 is a strong level of resistance which could turn price down again and a buy prior to a break would be high risk.

KGN 20Aug21

6 August 2021

Price rose to exactly reach the forecast target of $13.50 (and people say charting doesn't work!). 

Anyway, since that high price has retested the earlier low - something that almost always points to a strong rise ahead. With a 9% rise last week it would seem KGN is rising from the dead. 

Coming off a significant low (most probably a bottom) price has risen strongly this week to reach overhead resistance in the form of a downtrend line. A break and close above $11.35 would signify a break of that downtrend and $12.35 would see a higher high. I’d like to see 2 consecutive weekly closes above that downtrend before considering a buy (and even then that would be an early jump back in with significant risk).

KGN 6Aug21

25 June 2021

KGN has made a classic Elliott Wave cycle pattern (I'm just not sure if it's a full cycle or part of a cycle). Anyway, the stock made a Head and Shoulder pattern late last year. That pattern suggests price will fall below the 'neck' of the pattern (red dashed line) by the amount the head (the peak) is above the neck. That calculation is the green line at $7.86 - suggesting price may have bottomed. The low is also very close to the 261.8% Fibonacci retracement of Wave A down from the top of Wave B. Another charting theory says that price cycles normally retrace 75% of the amount they rise (from the low just off the left of the chart to the high at 5. That 75% is the purple line which also coincides with the low. All very technical I realise but what you need to take away is that all suggest the recent low is a bottom.

Price has  risen to break a technical downtrend line (a buy signal) and gone on to make higher troughs followed by higher peak on the daily chart (I'd prefer to see this higher low and peak sequence on a weekly chart but it is still a positive sign).

Price hasn't made a targetable pattern but I have an interim target of $13.50 which is a level of overhead resistance.

Coming of a significant low KGN has a much better chance of  rising than falling - we just can't predict how long that climb will be. In the previous price cycle just finished it rose 200% over about 13 months. If history repeats it could be a good long term hold (although the economic scenario is very different now from 2019).

KGN 25Jun21

 

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Robert Norman

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Email: robert@sharecharting.com.au

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