I agree mostly except for the positioning of short-term resistance and think the M&A 200 is a key indicator here of current bullishness as is a potential return to the former trading channel between 50 & 70c that broke down in September. The half-ceiling of the new bearish channel was broken through a few days ago. It indicated further movement north to where everything seems to cross over (200 MA) included, which is at the 38-40c mark. This will be key resistance area as is indicated by the selling volume in market-depth up to this point. A break above this resistance point would end the bear case, as is indicated by volume, RSI, & money flow etc. A convincing break above 40 would have upside to 60-70c. I don't think it would even pause for breath at 50c. 150 million of fresh capital will kind of have that effect.
If you look at a longer-term chart below, you can see how significant the MA 200 has been in the past to indicating a bullish view for KZL. Whenever the KZL share price has been well under the MA 200, a significant rally has followed. E.g. 25 June 2009...June 2010...and probably right now...January 2012...
The difference of course to past rallies and now is the expected strengthening of it's key commodity zinc in 2013-2016 with real supply beginning to disappear. KZLs sweet spot is the strengthening of zinc and copper simultaneously.
KZL Price at posting:
35.0¢ Sentiment: ST Buy Disclosure: Held
