Sometimes you need to be slapped hard in both directions to realise what the warning signs were. I for one have gone down this path.
The warning signs are clear on this one to the upside. The clearest indications of the next move on Friday were.
1) Low volume gap tap downs - 'lepanic' described his reasons quite well 2) A sporadic high volume test of resistance - normally designed to test what is around and secondly how much volume is required on the bid to stop a cascade of selling into a rise. 3) The regular alteration of the sell volume (same seller) at 34.5-35.5 - supports the notion that this is merely a cap that will be withdrawn when the time is right.
The next move should go something like this 1) Open through 34 2) Temporary morning retrace to close the gap 3) Volume kick in to close it above 34
I would then expect a constant stream of kick ups on low volume followed by high volume gap filling through to the next level.
Of course the world could end and it not happen - but I'm making a fair crust of being right at the moment on following the money.
IMO only
DYOR
NKP Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
