ADN CHART, page-3446

Alright time for a quick look at the setup after yesterday's shake out.

As i've said before it's how ADN consolidates that matters moving forward and so far so good, especially in the face of a rubbish market today that looks like it wants to head lower.

There's no doubt about it, all indicators are over bought at the moment, however whilst they remain at elevated levels, the door remains open for a continuation of the current move.

Volume starting to drop right away after the frenetic action of the last few days, which is good to see as ADN will start to setup for the next move.

As identified above the 18c mark proved to be an interesting level that has been resisted on it's first attempt. I've also included the 14c and 10c lines mentioned in the previous post. The 14c mark doesn't have much prominence on the daily setup.

I suspect that the share price will continue to consolidate between 18c - 14c in coming days and at the moment the 16c mark seems to be creating a level of interest on the daily setup. If we close at this mark today it will continue to become important moving forward.

I believe that there was a lot of hot money that took ADN from 12c - 18c. This will take more time to flush out, however what will happen is that this stock will likely end up in the hands of those with a longer term time horizon. No longer term holders would of been selling yesterday's news. Maybe a couple of people that were thinking about locking in some profits would of been spooked by the short and sharp price fall and hit the sell button as well.