Post by Admin on Sept 20, 2004 0:56:30 GMT -5
Volume Increasing Ahead of Another Surge?
From an emerging bull market technical standpoint, Azco appears to be conforming to the conventional wisdom of how stocks which have been building a long and strong base, tend to break out of the range on heavy volume, just as Azco did as it broke through .15 and ran to .22 on upwards of 2 Million shares of volume, before succumbing to a what has really been an exceedingly low volume pullback to test the .15 breakout, which so far appears to have proved successful. Then, last Friday September 17, the volume started to pick up significantly, just as it did prior to the last liftoff that succeeded in breaking through the .15 resistance barrier. Other notable analysts along with ourselves, pointed out that this important .15 level that was formerly a strong resistance level for Azco, technically should now become a strong support level and that might account for the increase in volume last Friday.
There is also another reason why this issue pulled back as sharply as it did. Firstly, in any bull market or emerging bull market, the sharper the pullback, often the stronger the next impulse wave will be. There is also reason enough to believe that some of the market makers may have been caught short on the last most powerful run-up and so they have been trying to walk the stock back down, so they can buy in their short position against the possibility of further upside that could potentially even be stronger, if the momentum is maintained or increased.
The first time Azco ran up, the market makers may have been caught by surprise, but they are technicians too and they understand how stocks can suddenly run up off a long base, especially on the back of the kind of volume increase exhibited and also with the knowledge that Azco might soon graduate to a higher exchange, they may have surmised as we have that Azco's low base price days might be numbered. So, they will no doubt be increasingly vigilant for bull market symptoms: Ie. Higher volumes and higher prices, as all of this tends to have a kind of catalytic effect on developments ongoing that can actually conspire to add fuel to a new bull market.
In the waning days of August, the prestigious Financial Information Service, "Morningstar" issued 3 bullish alerts on Azco Mining Inc and another prestige service gave the maximum, once in a blue moon all out 100% buy on virtually every technical indicator known to man. The result was a sudden and dramatic surge taking Azco to its recent highs within just days. So it is entirely logical to assume, that if the Morningstar and additional alerts, which were initiated at the same levels Azco is at today, produced such profound results almost immediately, then a pull back to similar levels, might not only re-initiate and re-invigorate those same impulses, but actually could even magnify them, because, in emerging bull markets, pull-backs or flag type formations, such as Azco currently profiles, tend to act like catapults to higher prices, that as any bull market unfolds, continues on higher with each pull-back creating the set-up for a new impulse upwave to unfold. Take a look at any chart coming off any base, such as the numerous examples we have highlighted and you will see how this type of formation shows up everywhere bull market activity abounds. Even the recent spectacular run-up in Crude Oil prices is analogous to Azco's pull-back flag formations, that invariably catapulted Oil prices higher to $50, following each pullback.
In conclusion. As we stated recently: "Every time Azco has dipped or pulled back in recent weeks, since it began its powerful ascent, it has provided Investors with a short term buying opportunity that has more often than not, quickly turned positive for them. That is the definition of a bull market. Investors tend to snap up whatever shares they can, as they build a significant holding in expectations of better things ahead or because they also believe they are buying into a greatly undervalued situation or both or other, such as appears to be the case with Azco and its apparent extreme undervaluedness...
Just look at the developing volume profile on Azco, where over the past two years volume has hit all time highs on multiple occasions. Indications that the smart money is moving into this issue ahead of what promises to be what could be a fairly spectacular run. There are many "Golden Rules" in technical analysis, applicable with unfolding basing formations: #1: Big volume precedes big prices.
One more reason amongst a myriad of compelling reasons, why Azco could richly reward those with the courage of their convictions...
) but today's volume and price tell me something huge is about to break. I mean HUGE!
Thanks for making me aware of this one. -Debi