@Croc-fileHey there Croc, bit going on over here eh?
Strewth, just clicked onto the chart and whamo, there's been some pumping.
So when I put the news events indicator on you can see that the SP never really reacted immediately to the news on the 4th of July regarding a 20mill debt facility. But 6 days later there's a strong breakout. Indicates to me that there has been an orchestrated pump to free up some capital. I mean just look at the low volumes on the 3 breakout candles untill the "blow off top" candle yesterday when the sellers piled in.
You will note that RSI hit 80 as well so nicely overbought.
What happened to the just going up nicely Croc and leaving no gaps, now there's heaps of them.
Nah seriously, often when a stock rerates it leaves a decent gap known as a breakaway gap and can be forgotten about as it never fills. But in this instance, the gaps didn't start emerging until days after the news which is odd behaviour.
Anyway, enough of the why's and how's, where is it going from here?
Man that "gravestone dojo" candle on Monday (circled below) was the biggest sell signal I've seen in a while. The opening auction today would have had them piling in to close out.
So after a spike like this one we can only now look for respected retrace levels and many use Fib racks for that which I've added but I need to say that IMO I'm not sure of their accuracy on micro-caps with such low liquidity. However the 62% Fib is the Fibonacci golden number of retracements and you're already just about there looking at below chart.
But I'm sorry but I would be surprised to see the SP come right back to the breakout level of .105. I know that's not what you want to hear but because of the nature of the rise and it's peculiarities as explained above I'd have little confidence in the 62Fib holding. Gees I hope I'm wrong and you guys can give it to me.
So, this post won't be popular as it's not telling you what you want to here but I'm just posting what I'm seeing. Hopefully there's plenty of folks who liquidated at the highs and can get back in far lower keeping the difference.
All the best guys.
Cheers
(20min delay)