AJX sell off, and it will bounce !, page-96

Since the high on October 26th we have had about 10 down days in a stady downtrend except for a couple of days. A lot of people bought in this period punting on picking the bottom. So we have an overhang of holders some of whom are itching to get their money back at least.

This is why 'V' shaped reversals don't have a great track record because there are going to be holders selling into the expected rising trend. Bullish reversals following a period of consolidation have a greater chance of success because there is a mopping up process over time which will progressively remove the supply/resistance. The double or 'W' shaped bottom also has a higher success rate for the same reason.

It is possible that AJX could go into a sideways consolidation pattern for a while - whilst the mopping up process works its thing. It would be surprising if the price fell away again but the wild card could be institutions possibly wanting to keep a lid on the price. As mentioned previously we are seeing algo and centrepoint trading which is not a good sign confirming institutional involvement.

There are certainly far more positive signs but it is hard to pick the next move.