(ASX:WKT) Walkabout Resources Forecast

Updated

"Walkabout Resources Limited (ASX:WKT) is an innovative African focused energy minerals developer, based in Western Australia with a focus on developing. the Lindi Jumbo Graphite Project in south east Tanzania"

Overall Analysis:
Strong fundamentals.
Long term hold despite short/mid term price action.

Probable descending triangle being formed.
If confirmed: 72.93% chance it will breakout to the trend (Bearish).
If confirmed: Wouldn't surprise me if a positive announcement was released before the breakout to manipulate it to the upside.

Day Trade:

Target: 26.5c (40% increase) @ Late Feb/Early March
Target analysis:

Resistance @ Weekly 50MA
Likely Descending Triangle - Resistance (Upper Red Line)
Previous Support @ 25.5c (Green Dotted Line)
High Volume Area 25.5c - 27c
FIB Retracement = Golden Pocket (0.5 - 0.618)

Support @ Current Price
Support Analysis:

Multiple Weekly Close above 100MA (Orange Line)
Descending Triangle Support (Bottom Green Line)
Previous Resistance 2018 @ 15c - 17.5c
Stoch RSI Oversold
Daily MacD Cross
Declining Volume

Note: Bearish Pennant on lower time frame (Dotted Pink Triangle)
Standard pattern breakouts suggest pennant breakout will follow the trend (Bearish) at a 55.19% percent probability.
Support currently outweighs the standard pattern breakout expectation.

Descending Triangle likely.
If price breaks 100ma expect to see 12 - 14c (Support on 200MA) = descending triangle invalidated?.

Note

Weekly close below 100ma - Trade currently invalidated as previously stated (subject to change)
Further downside expected testing previous support/resistance.
Uncertainty increases on the back of limp short term fundamental announcements.

Note

Price closed below the 100MA and big red candles followed just as expected.
Found support on the 200MA in which I would expect it will spend some time.
If the price breaks the 200MA like it did the 50ma/100ma then anyone who got in at 14c + will need strong hands.
The weekly close above the 200MA is what to watch.

Remember, this trade was aiming for the bullish day trade inside of a bearish formation as stated from the time of publishing.
The bears have taken control earlier than what was expected.
This could give great buying oppurtinites for FA Bulls pre-finance announcement.

Note

1:52 pm
Tuesday, 25 February 2020 (NZDT)

Red over all markets as gold continues to run.
Fears over Corona Virus pandemic Increases

Since early 2017 WKT has run in cycles around the 200MA.

The cycle first consolidates below the weekly 200ma.
Price finds support on the 200MA before it goes Parabolic.
After the first parabolic move it retraces to the 200ma.
After finding support on the 200ma it has one last bullish move.
Finally the 200ma is tested again until it is broken followed by consolidation below 200ma.
Rinse and repeat.

WKT is has currently retraced and found temporary support on the 200ma after the first parabolic move.
Huge confluence zone.
If the 200ma is respected whilst this FUD of the global markets cools down then these over sold conditions could flip very fast opening up a great oppurtinity for a long trade.
Price will probably consolidate around 12 - 14c as stated on the 17th of January while respecting 200ma.
A Weekly close above the 200ma (14c) is what the bulls are looking for.

Note

It's hard to find a bearish argument looking at the logs.

Note

Respecting the 200MA.
Watch the monthly close.

BitcoiNZz

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