What’s in store for next week?
The weekly chart shows a great breakout with a normal 50% retracement to $0.18.
The last five weeks volume has been
58,947,289 going up and 28,695,724 coming down.
Less than half sold to push it half way down & only 10 million of them sold in the last two weeks is hardly a serious selloff.
Based on those numbers I think the bulls still have it at this stage.
The three falling candles and the smallish volume look bullish to me ( similar to a rising three pattern)
The daily chart shows we are currently in the lower half of the price range & sitting on the last area of support before we hit $0.165 if that eventuates which was the break out from box 6.
As I have said before & hope to be wrong this time, in every box drawn since February showing the ranges & breakouts the sp has retested the original breakout point at least once.
I see no reason at this stage to think it will not do so this time.
Fridays closing candle shows a spinning top which usually indicates indecision by the market.
The volume to keep the sp up at the close was pretty flimsy as well.
Coming on a Friday and after a disappointing week one would have to assume that the sp will continue down but I believe that we will get a rally of sorts back up to the midrange around $0.205 this week even without an update.
Looking on the bright side further I also think I am seeing a flag pattern forming over the top of the previous bearish flag that preceded the fall from the highs at $0.26. These patterns are usually short term continuation/consolidation patterns.
A confirming break to the upside would see the sp test the $0.24 - $0.26 area again.
My momentum indicator has turned up off zero but that does not signify much at this stage, possibly a small rally.
I guess a lot of us are pretty disappointed at the lack of news and we are forgetting the big picture.
If the emotions & expectations of news can be kept in the background and the pattern followed there are some good opportunities to trade this, have some fun & potentially make some extra dollars.
The slightest sniff of an update may be the catalyst for the sp to take off again.
So sit tight & enjoy the ride, the big one will come when it comes.
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