MTO remains technically oversold with RSI challenging the 30 level on both the daily and weekly charts....but as they say may continue to be oversold for a while yet. Recent daily bars (DownPointers) indicate that a downside test move toward 16 cents is a moderate to high risk. In the context of recent bearish sentiment across the board for the gold equities, and a tepid good news from MTO management, this is a reasonable expectation, and should not be viewed with alarm, but perhaps an an opportunity to pick up a few more shares on the cheap. Upside technical targets now out number downside, as we could expect to see a pop toward significant resistance of 24 or 25 cents within the next few weeks. I doubt we could do better than that though for the near term without exceptional good news....and none of us have been accustom to that. We should expect news on December production either this week or next on a Tuesday or Wednesday,a pleasant surprise would be nice but I`m not counting on any major increase over last month given the season.
On the monthly chart, the December bar produced a Down Elbow( which pierced the lower Bollinger Band), an event which has occurred two times before, and was followed by a 100% + move from the bottom within 4 months. Although past performance is no guarantee of the future, probability is in our favour.