Trying to pick apart what caught my interest around the 31/3. Let's see if I can find a credible chart based explanation for it now we've seen the SP climb ~2 weeks later.
The large yellow arrow is when I posted something changed (31/3), it was roughly 3 days prior on the 28th that I first picked it up. So looking between those dates and now.
The 28th saw higher overall and net buying volumes, the grey support trend was tested but there was little buying pressure subsequently closing below the days high. 4 of the next 5 days saw increasing selling volumes driving the SP back towards the lower trend where recent lows of 4.1 kicked in to offer support. This seems to be a value support created by cash holdings below which would see RNU in negative MC. The 8th and 10th April was a bit of uncertainty for buyers possibly due extended duration of the downtrend. Once buyers started seeing volumes increasing, uncertainty appeared to ease and hope/speculation returned.
In retrospect, speculation this buying coincides with tesla looking for land in close proximity to RNU could be the reason behind the uptick in volume or those in the know got the jump on the rest of us.
Where to now?
On the non RNU front, there's a fair bit of fear in the market. In RNU's control though is the demo plant and all that comes with that including possible outcomes from product sent to China for processing and maybe even something going on with tesla. Re tesla, I'm wondering if there's some relationship to the recently announced gov solar battery incentives.
From a chart perspective, lets go back to the weekly big picture:
9 weeks of decline has been erased this week and the SP has stopped on the 9 week high coinciding with the LT downtrend resistance level, volume has returned. I see this as positive however caution that the SP is only 2 steps above the LT resistance and anticipate that will have to be tested before any further movement.
4-hour chart showing the closing candle in comparison to the LT resistance.
Very interesting price movements. I'd suggest holders/buyers are still a bit nervous after the decline in SP from ATHs and will be extremely cautious considering the macro events.
It's highly likely that 5.3 will be retested and below that 4.5 if profit taking returns otherwise 7.0 enters the fray. Would have been a good little earner if I did this in the 31st instead of in retrospect hey.
GLTA
Add to My Watchlist
What is My Watchlist?
