Could be an interesting week ahead if the momentum continues.
It looks like we may have just seen a successful mark up into a new trading range at the end of last week.
Wed saw first attempt. The sp closed above the supply line with volume twice the 15 day average followed by a low volume low spread day thu that failed to attract sellers. (The Doji candle after the previous day should have attracted some chartists to a potential pull back which did not eventuate.)
Friday we had the second attempted mark up with 2 & ½ times the 15 day avg & a close back in the previous $0.062 – 0.07 trading range. This appears at this stage to have been successful with the close in the top half of the day’s range.
The sp was unable however to stay above the long term down trend. This is the first attempt to clear the top of the pitchfork since mid July last year. A pause & further retesting here would make any break out stronger I think.
I would now expect the sp to retest the $0.061 – 0.062 level before continuing if the rally is in fact real.
The alternative interpretation & follow up of the last few day’s price action of course could be that we have just seen a pump & dump again. One tends to get used to those & often can’t see the action for what it it really is. A bit like the old “the sky is falling” tale.
If this has been another false start then we all know where it will end up.
Time will tell but the signs are good that this is the real deal for a change.
PSY Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
