Vela Technologies’ investment arm, African Hydrocarbons, recently received approval to transform the company into a blockchain technology set up under certain conditions. The TSX Venture Exchange gave the approval for the change of business transaction which will also change the name of the company to BlockchainK2 Corp. The shares of the company have reached key levels with the Elder Force Index moving above the zero line.
Vela has already made a conditional agreement with African Hydrocarbons according to which it will acquire a minority stake in the new blockchain company on investment of £200,589. However, the proposed investment will require final approval from the TSX Venture Exchange and there are multiple conditions that too are needed to be approved. Currently, African Hydrocarbons is engaged in oil and gas exploration in North America but now will start mining cryptocurrency after the change. The approval has made a positive impact on the shares of Vela Technologies with its shares going up by 0.9%.
Vela’s Shares Elder Force Index Move Above Zero Line
According to reports the shares of Vela reached key levels with the Elder Force Index moving above the zero line indicating that the bulls are in control. This level rises when investors are in a dilemma regarding the amount of risk they can handle with their current stock holding too much risk can put a lot of burden on their shoulders which even the sturdiest investor will not want. At present, the company has a 14-day Commodity Channel Index (CCI) of 260.50, which more often is used by the active investors as a technical indicator for evaluating the stock. Generally, if the CCI reading is above +100 it indicates strong price action signaling an uptrend. So since Vela’s CCI is above 100, its shares are trending upward.
The Trend Strength Of Vela Is Weak
An ADX value decides the trend strength for a particular product or company but not the trend direction. If the ADX value is in between 0-25, it indicates an absent or weak trend, ADX value in between 25-50 indicates a strong trend and ADX value in between 50-75 signifies very strong trend and if the ADX value is more it means an extremely strong trend. For Vela, the current ADX value is 15.18, which mean a weak trend.