As some people know I was hoping that Novo would stay a bit subdued until I could free up some more money but I gotta say that the chart is starting to look a bit scary for anyone who has been hoping that Novo would stay quiet. We are currently at a long term resistance zone (around $4) and it looks like we are in the middle of an “Ascending Triangle” continuation pattern:
An “Ascending Triangle” continuation pattern:
Novo chart zoomed out:
Novo chart zoomed in (Hourly):
… Note that Novo is my largest position because of fundamentals and I don’t really care where the share price heads in the short term. With that said, I of course prefer to buy shares as cheap as possible and if this pattern indeed ends with another leg up in the not too distant future then I want to have my position ready before that if possible. I still expect/hope that these levels will look very cheap in a few years. Lastly, I would point out that I don’t consider myself a good Technical Analyst and neither should you :).
I am a shareholder and Novo Resources is a banner sponsor of my site and thus I might be biased. Always do your own due diligence and don’t consider this as either trading nor investment advice!