Technical outlook – Using the many tools among the technical stock analysts, ‘Divergence’ is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.
In Technical Analysis, divergence can be a significant warning signal that a bullish or bearish trend is coming near to an end.
Divergence appears when a technical indicator begins to establish a trend that disagrees with the actual price movement.
These “disagreements” are strong signals and somewhat useful for the trader/investor.
Bullish divergence occurs when the price of an asset makes a new low while the indicator starts to climb.
The bullish divergence is viewed from the 3-day lookback Relative Strength Index (RSI).
It is assessed once prices break above $1.12 level, this in terms should generate a move $1.20 with scope to $1.32.
Company Overview – Silver Lake Resources Limited (SLR) is a gold producing and exploration company with resources in the prospective regions in Western Australia.
SLR currently focusses on its flagship project – Mount Monger Operation.