I'm not a technical trader, but I do use the charts to help...

I'm not a technical trader, but I do use the charts to help decide entry/exit and profit taking.

I've been considering whether the chart has been forming a head and shoulders pattern lately and I looked at it very closely today. I consulted Bulkowski's "Encyclopedia of Chart Patterns" 2nd edition, pp405-12, this afternoon actually. The volume patterns do not conform with his definition of a head and shoulders pattern. The volumes should peak under the left shoulder, with another lower peak under the head and a lower volume again under the right shoulder.

So hopefully we can avoid a further significant retrace in price from here.



The hammer candlestick that formed on Monday 1st January was interesting (yellow arrow on chart below). A higher volume of stock got traded on Monday but the dump into the market which pulled the price down was absorbed by buying which saw the price close back up at the open. This would usually indicate a capitulation and trend reversal with the top of the hammer becoming support. Tuesday, Wednesday and Thursday, however, have all seen bearish red candles and a more moderate continuation of the down-trend with the price closing below the hammer head but inside the hammer tail. It will be interesting to see if Monday's low of 3.4c can hold as support. If not, then I've measured a couple of different fibonacci retracement levels; one at 3.3c and one at 2.8c.



What's going on?

The XAO just went through a risk-off pullback last week;

The market appears to be full of twitter/robbin-hood/jobkeeper traders who have no patience and who seem to think that companies should put out announcements every day that ends in a "y" and this will immediately drive up prices;

These traders don't have long attention spans and have probably jumped off to chase lithium;

And as @witt has suggested, too many retail holders are too busy wetting their beds to stump up and buy more are instead hand wringing in public on this board scaring away new retail.

On the other hand, find me one analyst that doesn't have a bullish outlook on copper?

I took my profits on another stock today and cleaned out some rubbish from the portfolio. I have a couple of stocks I want to buy into but if HCH falls much lower (say 3.3c) I might top-up, but I really am too heavy HCH.

On the bright side, looking at the monthly chart, there is a double-bottom at 0.9c (Dec 18 and Mar 20). If we keep above 0.9c we should be headed up over October's high of 5.8c. What a year 2020 was hey? From 0.9c up to 5.8c. 2021 should be a walk in the park after that!