Today's announcement that PYC will be added to the S&P All Ordinariness Index on 22.06.2020 provided the much needed impetus to propel the SP into the next uptrend channel (dotted lines).
In a way, TA is simply joining the dots. Looking at the daily chart from Sep-2019, an uptrend channel developed when SP bounced up strong from the March low of 0.043. Interestingly it stopped just above the top line of this channel @ 0.084. This makes PYC a "well-behaved" TA stock.
Since 25.05.2020, SP consolidated and rested this top line successfully. Today's good news could mandate a lot of instos and super funds to start buying PYC shares to balances their investment mix based on the All Ords Index (Top ASX 500 stocks). 22.05.2020 is NOT a drop-dead date as the shares could be accumulated in the coming weeks.
The bull case:
Assuming instos and super funds are taking prompt actions to buy PYC shares, looking at the BUY queue with quite a few million shares being wanted, it certainly looks like the SP is on the move!
At or around 22.06.2020, 1st projected target would be 0.105 - 0.106 which is the 150% Fibo level;
At or around 30.06.2020, 2nd projected target would be 0.125 - 0.126 which is the 200% Fibo level.
The bear case:
Assuming instos and super funds are taking their time to buy PYC shares hoping to pick them up at bargain basement price with another correction due to 2nd wave of COVID-19 for example;
Next downside target would be 0.84 at 2nd last peak, then 0.075 at 78.6% Fibo, followed by very strong support at 0.067 - 0.069 where 3 peaks were and also the 61.8% Fibo level.
These are my TA thoughts, DYOR!If you like more of these charts and analysis, please click the "Great analysis" button for encouragement
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