What is driving the Share Price Upwards?

Over the weekend, I spent sometime looking at the chart of NXR, checking for different angles on what I was seeing. In other words, I was checking to see that all of the timeframes i.e. intra, daily and weekly were still matching up. I also went back over my research file to look for further clues as to what could be driving the share price forwards for such a sustained period. Today, the market sentiment was again Bullish NXR, which flowed on from last Friday’s afternoons solid close. IMO, there were market participants today scalping the spreads (to be expected), traders from late last week selling into the buying, and continued Smart Money Accumulation by Longer Term Investors. I say this as the volume traded today 6.5mill shares v the 21dayEMA of roughly 5.09mill shares, closed on the days high 11.5c, was the highest VWAP close for around 2 years (approx previous VWAP high early March 2013). Last Fridays and today’s price action certainly had periods where the Bears and Bulls went head to head, with the Bulls on both abovementioned trading days winning out though.
However, I do think we could see a retest of the 10-10.5c mark, to test that supply at these levels has been fully absorbed. I also do not think that the 10.5-11.5c level of supply has been fully absorbed more importantly. However, if the last two trading days volumes continue to stay at or above those levels, then I am thinking that these prices should be absorbed over the remainder of the week. Always happy to be proved wrong as well as I don’t always get it right. J. I mention this, as it will be an opportunity to add on the back of short term traders, scalpers etc exiting their positions for profits. Stocks cannot sustain significant price gains without some pullback, then consolidation, so I would expect to see this occur. Realistic expectations are always good when a stock such as NXR has had such a great run to date. Please note though, as the company gets closer and closer to finalising Stage 2, the more the stock is de-risked. This is quite important to note. Why, because as the risk mitigates, the more that those with serious money will Hit this stock i.e. Institutions etc. At this point, I do want to note that I am now suspecting that some of these ‘market participants’ may already be active participants.
Companies such as NXR, do not continue to appreciate in value over time, without major players investing into them, which is reflected in the ongoing NXR share price appreciation without good reason. This leads me to ask myself the question, what could be the drivers of what has been a sustained and deliberate accumulation of NXR. I think that there are a number of significant factors that are contributing to the ongoing re-rate of the company. One of the easiest reports to read that will enable you to quickly get your head around what has been happening can be found at http://paperzz.com/doc/2674395/sydney-&-melbourne-investor-presentation---nemex-resources Whilst this presentation was held in Nov 2014 to Melbourne/Sydney Investors (that I missed at that time L), I find going back to this report and re-reading it, time and time again, solidifies why I have made an investment in NXR.
Some of the possible reasons why NXR continues to receive an ongoing market re-rate could include: 1. Nemex can acquire up to 51% of Wavefront subject to completion of certain milestones and those in the know are currently factoring this in to their buying 2. The current share price is perceived to be undervalued by the Smart Money 3. As indicated in the abovementioned presentation, the purpose of Phase 2; is to enhance the technology and commence Commercialisation Discussions late 2014-early 2015. To me this is highly significant. I am assuming that these “discussions” have taken place, and that whomever they are taking place with, that they are progressing well. I say this based upon how the market has been slowly and steadily re-rating NXR . In late Dec 2014 the NXR share price was somewhere around the 5c mark. Since then, the share price has slowly increased to close today at (roughly) 2yr high 11.5c. The correlation of both share price appreciation and the timing of these discussions around Commercialisation of this new technology in my mind is not co-incidental. In other words, if the smart money that knows far more than the average jo-blow like me does, then I am backing that these talks are probably well advanced. I will leave it at that for others to deduce what they wish here. 4. The cost of online fraud globally is > $100 Billion (US). This is just one of the many and varied potential markets for this new and patented technology 5.………and so the list goes on and on......I like to write my own reports when I am deep into a stock, to re-inforce the fundamental reasons why, and to provide one source of checks and balances for myself. In the meantime, I hope that perhaps there is something in here that might be of interest to you re NXR or even other stocks.

Best Wishes
GF