Time to clear a few things up with a summary for the week
The bots have been very active for a number of week
As I have been calling now for weeks $2.97 is our major line of resistance and appears to be holding up with little dips below during the trading day nothing to be worried about as it is quite normal with the way our Bot traders work.
Charting relies on the normal flow of a market with both supply and demand playing a key roles in the day to day price.
Many things can influence the way the market behaves on a day to day basis
When a major influence comes into play your chart theory may be wrong if more than one influence is in play.
This leads us to what is influencing RAC
1. Large holder attempting to sell down part of his holding with the assistance of a Broker.
2. institutional Buyer trying to secure shares using traditional tactics.
3.Low SOI
4. Very high percentage of stock holders with very sticky hands.
5. Very low volume of trading.
6. Most RAC stockholder are very knowledgeable and not easily scared into parting with shares. (Fear tactics will not work)
So what might look like a downward trend under normal trading could in fact be just an influence generated cycle
This leads us to the current state of the market we have now moved back into the Keltner Channel and are seeking the market average.
The Bollinger bands are also now contracting.
MACD has crossed over.
The current state of play as I read it
Large share holder will not sell below $3.00
Large buyer has few options
1. Go with current play
2. Allow price to rise and free up volume to enable share purchases.
Next week is going to be very interesting as the cycle in play may well just follow the pattern already played out.
I did say no more charts for a while but the action has be so hard to read and I just had to share some further insights.
all the best
FireflyOne
The writer's opinions are his own and do not constitute financial advice in any ways.Nothing here constitutes an investment recommendation nor should anything written here or published by myself be relied upon for any investment activities.I strongly recommend that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
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