"It is a curious pattern of keen selling around 8 cents I am...

"It is a curious pattern of keen selling around 8 cents I am seeing.

Does anyone have a clue what the story is here?"




It's simply a strong level of resistance from past trading, it will be broken when it's ready, but what is required to push through this level has not yet been delivered.

I've stated previously that i think it needs a strong day of trading where volume exceeds 20m. I'll give quick run down of where i get this from.

Firstly it has been very light trading -

Average trading has been anywhere between 500k & 2m shares.

Even at the 8c level this translates to very small actual dollar terms.....

1M shares at 8c is only $80k


The day Phylogica/Pfizer released the partnership volume was just shy of 60m with a VWAP of 7.84c --- a 8.5c open & a 8.9c high.

The volume that day was the equivalent of almost the entire 12 month period prior to it.

Since then there have only been 2 days with higher volume than the averages posted above where volume exceed 10m & on those days it made an attempt to push back through the 8c region but was knocked back --- signalling that 10m is really not quite enough to move through it.

The first big volume day clearly took up most of Pattersons underwriting but left a new range of holders having bought in the 8-9c region.

We all know the Top20 shareholders hold over 50% of the registry but if you want to break it down to those holdings that have to be declared when any changes of that structure occur it is about 36% making up the 3 Substantial Holders & the companys director holdings - none of these have changed over the period.

9c will go it's just a matter of when that volume comes.



Just a little patience :-)