The stock still managed to close out the week above the downtrending weekly resistance line. It was unfortunate that the general markets took a beating as this caused the sell depth to increase.
I would not be concerned at all though nothing has changed in regards to Arafura or the rare earths sector in general. You have to take notice of the massive volume on up days, its more then just retail action, its the smart money buying in which is evident by the relatively low volume pullbacks.
Last wednesday Aru registered a massive volume day on the back of a 16 % rise, in doing this it blew through the upper bollinger band and had increased 30% in 5 days, so a pullback was always a chance and in fact is very healthy.
Even though the share price fell back the last 2 days of the week aided by the general market sell down it still has not even retraced wednesdays gain, therefore there is nothing to be concerned about.
I remain confident that ARU is on its way to a minimum of 1.20 and any weakness as a result of selling due to wider market declines is just another buying or accumulation opportunity....Good Luck!
ARU Price at posting:
78.5¢ Sentiment: Buy Disclosure: Held
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