Ok. So reading some of the other threads today, its pretty clear things are not good. I thought I'd provide some technical updates for those interested. Not based of HC user sentiment, fundamentals or anything else, simply off the technical indicators on the chart.
Unfortunately, if you don't enjoy bad news you should probably stop reading now.
We are sitting in the now legendary gap at 10c, initially created on the 16/11/2020. For some context, we gapped up on that day's open and to date, the chart has never come down to fill that hole.
Until now. However....
The gap has been hit with whats called a wick on the red candle from today, so from a technical aspect it wouldn't be considered filled. In the previous days trading, we have seen large red candles that create what looks similar to a pattern traders use called ''three black crows''. This is not a good thing for a few reasons. Typically, this pattern signals the end of a bullish trend by significant sell off's. We are not however, at the end of a significant bullish trend.
Currently, our 5-day average is below both the 20 and the 50 day moving averages. Add on the 200 day MA that is falling, we have all the very strong indicators of a long term bearish pattern.
Now volume. We have seen a uptick in volume that aligns with the 3 major red candles on the pattern above. as referenced by a previous poster, it appears a major ETF is unloading, plus others that we don't know about yet.
What about the buyers?
IHL has been in a long term patterns of catching sells. Basically, what that means is that buy lines have been set and forget at Fib levels or just below, waiting for sellers to fall into them. The dribbling volume unfortunately, to me at least, isn't in line with an accumulation period at all. It is however, pretty consistent with a pattern of retail traders that I have witnessed in many other stocks over many years that have been hyped.
Currently, we have a buy line that has been set at 10c. It's been there for a long time as this is the gap. It was demolished this morning, now refilled. But there isn't much below that, at least not on market.
So, if you put all that together, shake it up and pour it out what does it look like?
Sadly, nothing good from a technical aspect if you are an IHL bull. There are no technical indicators currently that say this trend will reverse. It's highly possible we will see SP levels capitulate further from here. From a TA perspective, I wouldn't touch IHL currently, not even for a sneaky announcement bump.
