TLG Chart, page-335

Morning all (evening all to those in US, Canada and UK)

The recent pullback from the new all time high was, on reflection, not all that surprising. The share price ran quite hard to $1.265 pushing it above the top of the trend channel and into overbought territory on Wilder's RSI. World markets also pulled back thanks to the second wave of infections in Europe and the US. So, probably a combination of the two.

Interestingly, Talga's charts still look okay. Double click each chart to make it bigger.

The first shows a scalloping pattern, an upleg followed by an extended sideways move with a rounded bottom (there's nothing wrong with a nice rounded bottom). Pure speculation of course but at this early stage the latest consolidation pattern mirrors that of the last one in September and to a lesser extent the previous one in June.




The second shows the share price sitting just under the top of the channel, however, Friday's candle indicates weakness as the close was below the mid point of Thursday's candle. Relative strength in the bottom pane is still very high at just under 70% while the moving averages and the histogram in the pane above are also high and beginning to signal slowing momentum.




The third (equivolume) is a half-hourly chart for the past ten days and paints a picture of buy/sell activity. The big red box on Thursday tells us 650k shares went through in the first 30 minutes of trading. Since then the pullback has been gradual with a double bottom at 1.11 on Friday afternoon. Perhaps the share price will hold at $1.11 there again maybe a test of support is on the way at $1.08, that said a bounce off support would likely see a move back to the mid $1.20s. Breakout from there points to a target of $1.44.




Last time round I anticipated a move up to $1.42 as soon as the price broke out, however, the downturn in market sentiment thanks to rapidly rising infections in Europe and the US put paid to that.

Until sentiment improves or Talga puts out some positive news we're in for a period of consolidation, my guess is at least a week or two.