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  • Jay

...when resistance becomes support...

Today, Silver Lake Resources Limited, which is an Australian gold producing and exploration company (stock code SLR on the ASX), has been added to the watch list.

As you can notice from this weekly chart, the price action has been very bullish. After 4 attempts at the resistance (neckline of its inverted head & shoulder - blue trendline), the price was finally able to breakout in June. It then came back down to test that previous resistance as support. The price is currently bouncing off that level, which is bullish and suggest a continuation of the uptrend, making higher highs and higher lows.

The RSI also supports this uptrend thesis as it is in a bullish range, i.e. it oscillates between 35/40 and 85/90.

The price needs to close above the confluence of resistance around the $1.045 area to confirm that this current (short term) pullback is over and that the (longer term) uptrend has resumed.

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