Chart

Hi Guys, Thought I would throw a couple of charts down today.
More to come later.
Cheers



Box A.
Will class this as a single run, but it’s actually two runs with a nice little low volume confirmation test in between just touching the 7.6c (blue) line of temp resistance, a nice rising buy entry point. Look at the effort/reward on these two little runs, very nice actually. The first run taking out the previous resistance point, and the second run taking out the high of the first run, followed by some more testing with no closes below the high of the initial break. Ran all the way up to what was always going to be a resistance point in the blue 10c line, this line was place waaay back in the avb chart and is always a point of interest despite the direction of travel.
Box B.
A similar looking run at first glance, however a few distinct differences.
Again a nice little low volume test before the breakout, but that’s about it for the positives on this run. All the work was done in a single swift up move which on face value is most of the time a great move, it shows they recognise the potential of resistance here (10c) and don’t wish to muck around with the drama of it all. They mark up the price swiftly and make the potential sellers second guess their motive to sell… Something along the lines of “might just hang on a bit longer, see how far this goes up.”
Now let’s look at the follow through on this breakout… It’s a bit ho hum really, at one stage it looks to be coming back to test the breakout, but the second run does not eventuate. Interest just dies off and the price drifts aimlessly for the following couple of months.
Box C.
Déjà vu? Yep, I think so.
Look, once again all the hard work done in a single swift move taking out that 10c line with a gap up move oozing strength and power. But once again look at the follow through. There is none, some volume gets churned and the price fails to make a new high. Not good effort/reward.
D.
Price is pushed down, this isn’t drifting at the moment, and this is an orchestrated move. Any enthusiasm is squashed and price is controlled trending down.
So the question is… What’s going on here?
Here are my thoughts.
There are definitely parties at work here and it’s great to watch, even though I haven’t traded this one for a while now I can’t wait to get back amongst it.
The price has definitely moved out of the long term down trend and is now in a really nice tradeable sideways range with three key zones of interest, being around 6c, 8.5c, and 12.5c which I will show in following charts. The price is being controlled and manipulated between these zones, but something else is at play here and must be kept in mind. Not only do I believe there is good accumulation happening in this stock but they are being absolutely ruthless about it, they are accumulating in the lower price ranges while throwing in trap up moves and distributing at the higher levels lowering their price avg. Very important if you are trading this stock or accumulating it to watch out for these trap moves, and don’t lunge for that falling knife. These guys are good, just wait for them to show the support zones, they will withdraw downward pressure and weakness will begin to be absorbed instead of created.