Consolidating after the drop?
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Yes MTM lost half cent to finish at 16c. Our volume was decent but not very high like yesterday, just over 5.3m shares traded. We opened at 16.5, touched high of 17.5, low of 15.5 and finished at 16 - I thought we finished strongly.
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ASX REE stocks again like yesterday did not have a good day today. Of the 26 REE stocks (list in my Weekly Report) that I track, on average across 26 stocks there was a loss of 3%. Yesterday it lost 3.5% - so back to back weakness in the sector.
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So are consolidating? Looks like. There was a big drop yesterday. Usually after a big drop there is a chance that the lingering affects continue. If it was going to be bad and if yesterday was telling a story, we should have dropped much more today. So that was a positive thing, but as I say, there is slight weakness, anything can happen so please dyor
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We started strongly and were able to touch 17.5 with line wipes - so the buyers are still there. That is very positive. If they are really wanting to move, I think they will wait to see the supply in this area and try to exhaust it.
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From a numbers perspective, those reading my posts for last few weeks, there were some numbers we were talking about - both for support and resistance. So 15.5 was a big number, then 17, then 18 and finally we thought we move to 20s. We did all that and now we are back. We have to do that again. In life we can't go back but stock market lets you go thru journey once again. So now 15.5 is the key number. We touched it today. It is looking like our good support once again. So we need to finish 17+ soonish - depending on what more supply is here. There was a good volume today to churn out people happy to exit and there is a good chance that if we move up, we should encounter less sellers.
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Lot of healthy discussions around fundamentals - both positive and negative aspects. I think it is good to know where we stand. Sometimes it is much better to go ahead with right expectation rather than misguided opinion. The right expectation can lead to much healthier outcomes, as punters are satisfied and they will stick to the stock longer. Lets see - I am sure we will hear more about it.
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Personally I picked up some oppies at 5 for my trading stock and a small number of heads. still holding other trading stocks that I picked yesterday - heads around 16.5 average oppies around 5.7 average. But I sold both heads and oppies trading stocks yesterday morning, so am now picking for next round. My long stocks average is lower but I am not playing that and want to see how we.
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So what will happen tomorrow? Yesterday I had said I don't know what will happen today. But today is different. Today's trading is giving indications of bottoming over here. There are good signs. For tomorrow, I feel after a little bit of indecision, we could start thinking of shrugging of yesterday and moving up. It would be good if 15.5 hold, and much better if we can overcome 17 and finish above that.Will that happen? Lets hope so. All the best.
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