Feb Reporting?, page-15

See that trading on Friday? Very strange. I bought on that last little run and thought we would have some good appreciation leading into reporting so Thursday/Friday really surprised me.

I had a stop set and it jumped straight over. I waited for the support area before chasing the falling knife and selling and true to form it bounced back up so fortunately for me (at the moment), i haven't taken a loss.

That was real strange trading if you ask me.

So as with almost anything on the ASX , you can read that as signalling a continuing downtrend to come or you can treat it as the start of a major reversal leading into end of Feb. I'm going to treat it as a reversal because the strength was pretty good at support level. There's a slight double bottom coming into play, which in fairness has occurred before without a positive reversal.

This time for some reason i think it will be positive. I expect earnings to be good and i expect them to announce positive information soon enough regarding new product.

#edit - Held.

Main concern is China and how the virus may be affecting them. Best will be if the report only focuses on results because anything negative currently relating to corona virus will hurt it. If dairy has continued to perform well in China then it will be a great result.

So was it a little shake out before positive earnings results or are a few heading for the hills due to their exposure to China? Long term i think demand in China will see them bounce back real hard because China will need the imports more than ever.

So if the SP does get hit by negative china news, be ready to grab it low because it will bounce for sure at some stage. Interesting few weeks. Without the virus i would have locked this one in for a great month this month. Really not sure at the moment and will be watching the chart like a hawk this week.