Source: Clive Maund 05/06/2024
Technical Analyst Clive Maund examines Graphite One Inc.'s charts to explain why he believes now may be a good time to Buy.
The intensifying debt crisis is expected to lead to a capital flight from all debt instruments and fiat generally into tangible assets and specifically into commodities such as graphite, all of which are expected to soar. This being so we are now believed to be at a favorable point to buy Graphite One Inc. (OTC: GPHOF) stock as it has reacted back over the past year or so to a zone of strong long-term support that we can see to advantage on its 20-year chart below.
On this chart, we can also see that when it broke out of the giant bullish Falling Wedge downtrend early in 2021, it soared before settling into a broad trading range over the past several years.
Superficially, it looks like it may have broken down from this trading range late last year and this year, but an advantage of this long-term chart is that we can see that it has not broken below the strong long-term support that dates back as far as 2008 – 2009. So, this is a very good point for it to make a major reversal to the upside.
Zooming in now via the 5-year chart, which shows all of the action so far this decade, we see that Graphite One has a habit of making dramatic spikes higher that are followed by long cooling-off periods or reactions.
The current reaction within the downtrend shown has been going on ...