$HCH - Hot Chili - Volume Breakout at Resistance

$HCH - Hot Chili - Volume Breakout at Resistance

HCH closed up 25.0 percent on Friday, April 5, 2019, on 3.56 times normal volume and appears to be in a medium-term rally confirmed by multiple indicators.

Most importantly, the faster 9-day exponential moving average is above the slower 21-day exponential moving average and both are strongly rising with previous resistance in the .030 + range having been heavily tested and the long wick shows buyers were prepared to pay significantly more before the rally retreated.

Volume has surged past its 30 day average and our OBV (On Balance Volume) indicator also looks to be about to breakout and push strongly though its 30 day moving average so there is strong buyer interest coming into the stock.

The RSI is above 50 and moving up which is also a great sign of strength. Importantly the RSI is at 60 so well below the 70 to 80 traditional reversal range which indicates the stock is probably considered fairly valued by the market at this price point and nor is it likely to trigger profit taking as it's not in that overbought range. With these signals it would seem less likely for it to reverse significantly without a strong catalyst like bad news.

Other bullish signals from the days trade that will help support our break out include:

- MACD Bullish Signal Line Cross
- New Uptrend
- Pocket Pivot Swing Setup
- Volume Surge
- Wide Range Bar showing Range Expansion
- Wide Bands showing Range Expansion
- Upper Bollinger Band Touch showing Strength
- Crossed Above 20 DMA

OR TL;DR

Volume breakout at resistance

About Hot Chili

Hot Chili Limited is an Australia-based company that acquires and develops copper multi-commodity projects within Chile. The Company is principally engaged in mineral exploration. The Company's geographical regions include Australia and Chile. The Company's project include Productora copper project. The Productora copper project is located 15 kilometers south of the town of Vallenar, at low altitude, in Chile's Region III. The Company is focused on achieving growth and development at its Productora copper project, and in expanding the Company's project portfolio to ensure future copper production hub.

Disclaimer

I am guessing and the market lies.

Comment:

Having another go at breaking out. Have topped up at .036. See what happens. Stops are in as always :)

Comment:

Trying again. It isn't called resistance for nothing :)