Over the last 2 months the OBV has been trending downward which probably indicates sellers were in control of price rather than buyers. You see this often in april/may/june which many people associate with tax selling however often as not I'd say people selling to 'beat' the tax sellers are actually causing the sell down in the first place (self-fulfilling prophecy anyone?).
last 2 days OBV has trended sharply up, actually sitting right near its peak for the last 12 months, meaning buyers have stepped in and are controlling the share price.
Given that it also broke above previous highs and closed above previous highs, good sights for a new upward trend occuring. We saw a similar pattern (over a smaller range) in september/october last year when the price stagnated and OBV trended down then broke up in november followed by a rally which lasted 4-5 months.
Not saying we will see the same order-of-magnitude rally as last time, as fundamentals say we are heading into the region of 'priced for growth', however we should see a nice rally for a month or two IMO. perhaps heading towards that 75-80c range, which would compliment the rest of the chart in terms of movement. At that stage we may be over-priced on trailing metrics and some funds may re-evaluate the size of their position.
PGC Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
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