Hey everybody! Well today was a wild day from the beginning! Asx turned on dime & after a somewhat positive start (all ords were up 1%+) it quickly reverted to negative and at one point was down (-2.95%). From that moment on IHL started to capitulate with some aggresive and unproffesional selling taking place for the best part of an hour and a half. We saw a reversal on the sell side shortly after as some massive volume (relatively speaking) began to come in on the buy side as a few big lines on the sell side got wiped.
We tested the 200 day moving avg as I thought we would at .40cents and closed well above it indicating a strong pivot point considering the market was still deep in the red. Gap was also filled between .415 and .420 which is another positive. There is now 1 gap that remains, the gap down from .530 to .510 and i expect this to get filled within the next 10 trading days.
RSI and stochastic oscelator both point us to being oversold & with a steep sell off as it has been i would expect the turnaround to be quite quick and aggresive to the upside. We experienced our capitulation today in my mind and the selling is basically finished (in my opinion). The only thing that will cause ihl to continue this sell off is if the US markets continue the correction which in my mind is very close to being over.
US futures are down quite heavily but i am thinking that we will see the pivot point in the global markets tommorow.
We shall see how correct or wrong i am but i put my money where my mouth was today and bought more shares at .405.
Fundamentals in tact? Very much so and technically speaking we can see that we are getting primed for another move up to coincide with OSA results.
Always darkest before the dawn people!
Have a great night folks
