As expected last week the decreasing volume re-trace re-acted well to the trend line and bounced off it on Monday, unfortunatly for a good announcement it was met with selling pressure and instead of climbing to the top of the trend line the price fell well short of the day high, indicating supply in the background. The next day was much of the same with drill permit news sold into and subsequently braking down the chanel formation on the next day. Weakness in the chart.
Fortunatly support was found at 11c and has acted reasonable strong with a double bottom on the chart. There seems to be a lot of supply still in the background and although most shareholders dont want to hear it we will need to consolidate for a bit to tighten up the register for the next move.
Remember nothing go's up in a straight line and consolidation periods like this are needed to strengthen the chart for the next move other wise as we saw with the Zhongfan and Drill Permit news on Monday and Tuesday the buying will be met with selling pressure.
Descending triangle still needs confirmation as it has 2 early touch points, another further along the line would be more significant, but i see this as being the go after the brake down of the chanel formation.
This phase is the accumilation phase.
Hope you all have a good weekend.
ASN Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
