PSY TA thread, page-45

Box 7 had a target of $0.235 & a $0.07 range with the center at $0.20-205. It reached & achieved those numbers in one day which was quite exciting at the time but since then as we know has not been able to stay above the half way point for more than one day.
We have consolidated in the very lower half of box 7 for 17 days but did not trade the full range of that half so a new range box ( Box A )with a $0.03 range has been drawn to reflect that lower range and today we entered a higher one (Box B) with a target range up to $0.225 with the center at $0.21.

Todays action chart very positive looking.

What I see atm is…….
A breakout of the trend channel drawn in Blue. (There is another option of that trend channel drawn in red which may or may not be significant but can’t be discounted yet as that line intersects the center of the new box B & may or may not be a point of resistance but it has been in the past.)
In the event that the sp breaks up thru the top of that red channel line the target is up at $0.36 – 37.

The close clears a rising trend line angle that has seen a reaction on previous 6-7 occasions.
Todays close is at the previous support / resistance of $0.205 (The central area of the original box 8)

I also see a breakout of a bull flag that has its pole on the 21^st Oct. The breakout today is a classic flag breakout move with a volume spike of 2.5 times the 15 day average volume.
The Red triangle is shown & the Red bars at right of the chart show the target from this up at $0.215 & just above the center of Box B.

The breakout targets from the boxes show Box B top at $0.225. The theory of the trading range breakout target is twice the size of the box when it broke out & that is up to $0.255 which is exactly the high we achieved from the original breakout on 3 Sept. (A full 100% recovery)

That will be nice when it gets there but I don’t expect it to happen overnight.
The only warning sign I see atm is the momentum indicator being in the overbought area.
It has only been in the overbought area longer than two days once in the last 12 months for 9 days so I expect we will see a pull back at some stage soon but I think we can expect a higher high tomorrow and close tomorrow. Maybe Monday or Tuesday a pause or pull back.
I would not expect any T+3 selling but it is Friday after all so anything may happen.

Given the strength of today I will not be surprised to see a close at or through the top of Box B.
Bring it on baby.