Bernsta, I hope so.
Today's close positive in that trading closed at the day's high and this coincided with S/R. On the negative side it didn't close above, and also the volume was lower than average. So we didn't see a lot of supply present itself at or just below the resistance level, but we also didn't see a lot of buying effort willing to bid the price up - perhaps wary because the SP is in an identified downtrend. So all in all today's trading action leaves us looking for some additional confirmation tomorrow. Will investors reading their daily announcements over dinner tonight see Velpic's announcement and decide to jump in tomorrow, or will we see existing punters get nervous that this level is unsustainable - I don't know and will have to wait & see.
What I would like to see, to get confidence we have a reversal, is:
1. more volume coming back in
2. another green candle tomorrow closing above support/resistance
3. price close above the 20 day moving average
4. price breaking out of the downtrend
Will I get those now or have to wait, that is the question...
For now, I am happy that the SME version has been launched, and this will help support sales. I don't expect to see a raft of signings in the next 1-2 weeks, I suspect we will see the benefits in Q3, and happy to wait till then. If it goes lower in the meantime because of the TA, I will buy some more.
Cheers, Sharks.
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