Ann: Trading Halt-SYR.AX, page-124

2.39/2.44/2.5 (expected); 2.64; around 2.8; 3; 3.2 (3.15 and 3.25); 3.45 to 3.53; 3.65; 4; 4.5; 4.72

Reminder above of what I have been calling as SYR price key levels which I identified many months back, with the 2 most relevant recent ones marked in red.

Worked out yet once again with SYR rushing towards 2.8 just 1 day after dropping past AUD 3 yesterday. A small difference today though was 2.8 was resistance on the way up after sinking below.

My last comment (quoted comment) was Jan 31. I mentioned there again of how I had illustrated one week earlier on Jan 24 that SYR failed at the (3.45 to 3.53) zone. A quick look at highs of last month show that SYR has never entered that zone again after my comment as it clearly failed to push through earlier as I had shown.

Take a look at the 3 month chart and you will see that while SYR did a fair deal of work to cross 3 and reach its high, and after that it has more or less been making lower highs and lower lows. So today can be seen as a continuation of what has been happening since the Jan highs, rather than an isolated instance

There has been some good support at 3 which I also pointed out last month as due to the work put in towards the end of December (to finally cross $3) but it was once again meeting resistance around 3.15 and 3.25 mark.

If you check last months highs, lows and closes for the day, you will see that around 3, 3.15, 3.2 and 3.25 have repeatedly figured at various points of the day on countless occasions.

Around December, I have already given my views of around the 2.5 mark and some of those still hold. That level or perhaps even the 2.64 level (since that was the weekly bottom on December 12, 2014) could either be potential long term bottoms if it finds support or the start of a bloodbath if at all those levels snap.

Incidentally shorts on Tuesday was more than 0.5% and shorters picked an absolutely perfect day to cause panic, pushing it below key support of 3
http://www.shortman.com.au/stock?q=syr

Notice that high of the day was 3.2 on Feb 20 and did not cross this level after that, with SYR banging its head around the 3.15 mark itself after that. So Feb 20 onwards seems like a failure at the (3.25 to 3.45) zone.

Plenty of wild cards now which can take the share price anywhere –

1/ Failure to make any reasonable progress above 3 (as I've shown above and last month's comment) and consequent loss of bullish momentum (negative)

2/ Recent rumours of ….well, I’ve even forgotten what the rumours were about. Was it an offtake or something? Whatever happened to the South 32 rumours by the way (neutral since SYR often seems to have mysterious positive rumours which end in tears - remember the Glencore one!)

3 / JCP ceasing to be substantial shareholder (don’t know what to make of that).

4/ SYR potentially coming into production in 2017 (positive)

5/ Macro! Despite markets being high, SYR has failed to make meaningful progress. So this is a negative

6/ Weak sentiment across graphite stocks (negative)

7/ SYR pretty close to very key long term major supports (depends which way it goes). If I was a shareholder though, the first question on my mind though would be where to from here considering that SYR has failed to have a meaningful rise above 3 despite strong global markets. Is there a failure above the 3 zone like there was a failure above 3.45 last month? This could be a key concern if AUD 3 starts acting out as resistance.

While SYR still has its positives, I’ve always mentioned that I’ve not personally found the drama to be worth it, as it has not offered great returns as a long term investment (thus far, at least). Hopefully, shareholders can now see what I’ve been talking about all along.

Good luck