IMO, the decline in last week was totally technical & was by traders.
I believe there were 3 technical reasons for the decline:
1. there was a gap between 4.3c & 3.5c that techies like to fill before they would see the stock going higher again.
2. We have support on 3.5c & that had to be tested.
3. RSI indicator was clearly showing that AAR was overbought & started to decline below 90 which always means that it's time to sell becuase popularity is fading away & techies don't like to be stuck in an unpopular stock.
Now the situation is:
1. the Gap is filled by touching 3.5c twice.
2. Support was tested by touching 3.5c twice & it didn't break!!
3. RSI is in the right position to attract more buyers rather than attract sellers.
If I'm not mistaken, I believe sellers were traders & I would also think we still have a big chunk of traders holding because I can't see any more sellers & that is a sign that the same traders who were selling before on depth are now expecting a rise & therefore they pulled thier sell orders!
cheers,
AAR Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
