Glad to be reinstated to hotcopper. And where else to start than may favorite (for all the wrong reasons thus far) stock IXC
Lets start with the chart hey
On the monthly its starting make some wicked positive divergence
The link below provides a detailed explanation of positive divergence with an example
https://ragingbull.com/pennypro/positive-divergence-explained/
In a nutshell it indicates the selling pressure dropping off but the MACD rising, so someone purposely is pushing the price down on low volume (can be someone trying to accumulate or dumb impatient retail) but the indicator is rising.
All this means is it bodes well once the pivot points are taken out.
Here on the weekly you can see the pivot points developed are getting closer and closer together, meaning that once again the selling pressure is dropping and they are struggling to push this lower. Once pivot points get close like this it creates a suction when it goes back for them and usually wipes them all out at once.
The big area for me at the moment is 66.5 once we crack 66.5 cents I have no doubt we will see $1.
I have resistance at $1.10 area which is the door and thats where it will most likely head once pivots are taken out.
IXC for me (and the reason I keep accumulating these levels) is as mentioned before one of the safest best risk v reward stocks on the ASX. Management have continually kicked goals, not missed timelines and getting the job done. Yes the price hasnt gone our way but its one of those stocks that when it does get some buys in itll do 100% in a day.
If you check the broker history over the last couple of months its been retailers selling to instos. Instos have been controlling this stock for a while now IMO as its such a hard stock to accumulate and dumb impatient retailers are selling a Phase 3 company valued at 16 mill EV near all time lows due to impatience.
As Ive been keeping tack every quarter the top 20 HAS NOT moved. Then add another 20 or so percent of holders outside of the top 20 that are holding long term, there would be less than 5-10% free float on hand, and when this gets on peoples radars (and it will) they will be jumping over eachother to buy.
Got to remember you've got fifty-one capital options coming up to expiry in 2 months time
You've got directors having to fork up over 1 mill by the end of next year (hence why they are most likely not buying on market)
Remember Tom Duthy has to exercise $1.04 million worth at $1.30 by the end of next year. Imagine that for a vote of confidence. Other directors have to exercise a total of $1.32 million at 0 cents by end of next year as well.
Other examples of bios where people were wanting to sell due to impatient and now looks where its at
NEU
The other key thing to note is the biomed ETF chart
Its been in a bear market for over a year but look at the pattern its starting to put in (inverse head and shoulders). I have the commodity chart hitting monster resistance, as inflation gears up where else better to put your money in bios (especially ones trading near cashbacking in phase 3)
At the end of the day if you are not willing to wait thats fine, but where else would you get a better risk v reward. Look at the broker reports and you will see instos buying at the moment (I wonder why)
at $2 - 150 mill MC
at MST val of $3.38 - 250 mill MC
There are phase 3 bios out there 10 times our valuation
Our phase 2 results are strong we should be trading way higher and will be!
Accumulate now in the 50s IMO cause once 66.5 cents breakout is taken out we will never see these prices again. Will be funny in a years time when you will be saying to yourself why did I not buy more back then.
DYOR
(20min delay)