Chart Analysis: Tanzanian Royalty Exploration (TRX)
Let’s start by reviewing the period between April 2006 to January 2010. This is when several levels of long-term importance were established. Given the high at around $9 and the low at around $1.50, the fibonacci levels now influencing the share price are established. Additionally, an up-trend was established, as indicated by the trend line from the dips in October 2008 and September 2009; this up-trend has remained in tact and serves as long-term support.
Here is the long-term chart for September 2008 to August 2011 showing the long-term up-trend with long-term trend support at $5.
Medium-term chart for October 2010 to August 2011, indicating a short-term range trade between long-term fibonacci levels 60.8% and 78.6% descending wedge with trend support at $5.
Short-term chart for March 2011 to August 2011, indicating a descending wedge formation nearing completion.
It looks like we have a short-term down-trend-line breakout on the 1-year chart in TRX.