vwap significance...

For those wondering...

And judging by all the posts on RXM lately, there are plenty who are...lol...anyway, todays VWAP of 39c is more than yesterdays "big day" which only registered a VWAP a little under 37.5c.

So, in spite of the relatively "soft" day, we did not see any signs people holders view the stock as expensive.

In trading terms, this is bullish, suggesting shorts who most likely exited during the recent higher prices trading period (between 12th-20th Jan), have likely bought back their stock...it also means stale bulls, perhaps trapped in the stock during the same period, likely to have taken the opportunity to average down during the recent softness, likely exited on Thursday's volume/price spike.

What this means is that a sort of equilibrium has been met between short term "adjustment" and indeed longer term interest.

I also suspect the larger shareholder/s who dumped and kicked of the extent of the retrace, have also reloaded their potitions.

So, with a VWAP today of 39c, we have to go back to the 20th January for higher (40.4c), which was more or less the last day of the net adjustment churn, which followed the spike to 75c.

In short, I believe we are free of most of the "unantural" or "forced" trading patterns (such as holding down the stocks to facilitate averaging down and/or short reloading)...as such, the following VWAP for the high volume, higher price period becomes of interest to me...

Date - VWAP
12th - 41.3c
13th - 63.61c
14th - 48.5c
15th - 42.8c
16th - 45.7c
19th - 44.8c
20th - 40.4c

The significant dates for me are the 13th (63.61c) and 15th (42.8c) being the likely upper and lower resistance days, they also more or less form the upper and lower price average days...more or less book-ending where the stock will likely settle in the period ahead should the current recovery (follow-through run?), continue.

Of course, any trading above 63c would point to 75c as an important resistance line...but can't see the stock getting there without significant news/results.

In addition to the above ranges of interest, we have the daily MACD (26 long, 12 short, 9macd) indicator crossing up throuhg the trigger line and a narrowing of the bollingers, importantly coinciding with an upwards move of price away from the EMA, suggesting a significant trading junction approaches.

Given the stock appears to have found its own floor of stability since the initial spike...and with drilling recommencing within say 2-3 weeks...one would suggest more likelihood of an upwards bias near term than a downwards one.

I would appreciate the views of madmacs on the charts here...which are looking nice to me.

Thanks in advance.

Cheers!