One thing about the cap raising that was always interesting was its ability to push NCM into a new trading range - as so often happens for good or ill. I think that's what we're seeing now.
The last break of range that we saw at the end of last year was bullish, and put a sad end to the easy channel trading to be had throughout '08.
She could jump either way from here. I think a lot of people expected a retrace to 27 from the low 30s after the cap raising, and the short positions reflected this then. The smart money would be on a retrace from this level. I have to admit to being sorely tempted to put my shorts on again here today. Normally I would.
The wildcard, however, is the POG and general sentiment. Certainly she has a battle on her hands at the moment, but if - miracle of miracles - $920 plus should hold over the next week, then I reckon we'll see more green here.
Standing aside for me too today bar a small 'what the hell' holding.
End of day should be very interesting indeed. I'd not be surprised to see caution take hold.
NCM Price at posting:
$34.54 Sentiment: None Disclosure: Not Held
