Alacer Gold Corp. declined from $12.66 to $1.95 (A-B) and then found support near $2 since 2013 (dashed line). The price action over the past year has been above the 40-week Moving Average (40wMA) and mostly below $3.10 (dotted line). A rise above $3.25 could lead to a rally toward $3.75, and a sustained rise above $3.75-$4 could signal the start of a new up-leg. Sentiment indicators including the rising 40wMA confirm the bullish potential. A decline below $2.60-$2.70 would be negative. A rise above $3.75-$4 would signal an initial target of $5.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: http://www.decisionplus.com/.