So I was reading the 'heated' discussion on the other thread...

So I was reading the 'heated' discussion on the other thread about this being under selling pressure and thought I'd provide some commentary.

See the indicator up the top? That's volume as AUD. The last read was 1.815M and the red figure is the value of the 20 day moving average.

As said before the price moving averages on this chart are are stacked on top of each other and are pointing up. From bottom to top - 200, 150, 50, EMA20, EMA10. The configuration of price above an upturned 50 and 200 SMA is a traditional indicator that we are in a longer term uptrend.

In fact, the consolidation period were are in now is around a 52W high and all time high. You can see previous high consolidation periods in the purple boxes (there are more) and note they frequently precede moves upward in a powerful trending stock, of which this is one.

Okay, so selling pressure - Note we have had a huge expansion in volume. In that first purple box volume SMA was ~ 800K AUD / day. Second purple box it was around 1.2M. This consolidation, we are at 3.43M. So we've got more eyes on the stock for a start.

The volume in this consolidation has dropped right off as you can see. This is not an indication of selling pressure. This is an indication of accumulation pressure as price is settling around a point where buyers and sellers are in balance.

In fact, going forward we will hopefully continue to see the price range and volume contract until shares to market almost become a drip feed. Price may continue to worm up and down a little bit but towards an increasingly narrow point (look at the first purple box). This is an ideal technical setup. Then as the poster above said, break through a pivot on elevated volume and.. whooshka. Off to the next phase.

Of course this is optimistic thinking. But it's not irrational. You'll find many examples of this type of setup working and delivering powerful returns throughout history across all stock markets.