**toxic analysis**by jam the previous retracement was 9.4c so i would expect this retracement to be short lived and around 9.7 to 9.8c before heading back through 10c...as i mentioned in a previous post on hotcopper the retracements are higher lows everytime which is a positive thing and shows a strong uptrend.
If the volume is still there then which ever way the shareprice is going it may continue...once volume drops off and the shareprice reaches an equilibrian you will see the share price fall and re allign itself with the indicators that are showing an overbought state..this is what happened over the last few days............a shareprice can not keep rising at such a steep incline and at some stage it will retrace....since the sp has gone up so much and at such a fast pace it should fall back as the volume dries up...we had 14 million traded yesterday which is still good volume so it will be interesting to see if volume dries up today or whether it drives the price north
Fundamentally speaking, if the announcements keep on coming then charting gives no immediate direction as it is driven by announcements...when all the excitement of announcements die off ,indicators such as VOLUME/STOCKRSI/MACD/BOLLINGER/ may drive market sentiment and if traders buy and sell points are triggered there is NOTHING you or I can do to controll that....traders ALSO love the announcements also as it increases volume and allows them to trade in and out several times a day for huge profit...the more liquid a stock the more money exchanging hands...cheers Jam
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