KZA Chart, page-236

Oh my goodness me. What a week. As someone who dabbles more at, what many consider the speculative end of the market, it was a hair raising week for sure.

Dear little Kazia broke down out of my beautiful bullish upward sloping diagonal support line this week. What does that portend? It could be up, down or sideways!

The bullish explanation is that a break down below a bullish upward sloping support line as we near the pointy end is the final shake-out of weak hands by the accumulators before supply dries up and signals the trigger for a bullish breakout. That would be nice but would need news. The failed break-out in April was made without any news catalyst and quickly ran out of steam.

Another interpretation is that we have transitioned into a sideways drift.

We don't seem too close to having to contemplate a bearish scenario and it is more likely, in my view, that for the price to drop down below, say $1.10 would probably involve some market-wide correction.

It seems most reasonable to assume its most likely going to be sideways until some significant market moving scientific data hits the market.