Thanks, interesting to hear what the Itchmoku indicators are saying...
This is difficult to call on the daily chart. It hasn't triggered alarm bells with me yet, and the sell down to here has been on average daily volume. The cynic in me thinks that the sell down to $3.29 was to trigger some stops below the $3.30, psychological floor. It has had a nice little bounce from there and then settled back to the low side of the $3.32 which happened on the 16/10 last year. Interestingly, the last time it tried to close this gap on 7/12, it bounced quite strongly off $3.33.
On the weekly, the washout should be over at the end of next week as we see the selling dry up. I base this on the weekly chart for the last 3 years. There have been no more than 4 weeks of consecutive down candles. For the last significant sell down, look on the weekly for the four weeks ending 19/6 last year. The third week was the largest volume then and if this repeats, then this should be the highest volume week.
This is the weekly chart with a bit of Elliot wave work that is best seen on the daily so I've included that too.
https://invst.ly/6hmco
https://invst.ly/6hmkb
I made the wrong assumption that after the 8 waves beginning 29/8, that we'd start up another uptrend.
It is important to keep in mind that the end of March, when the annual report is released, is the time that the analysts will be able to weigh up whether or not the insto valuations are legit or flawed. I'm sure we all know which insto I am particularly talking about here. This is not far away so I'm most likely going to hold tight until then.
Bit of IT support required Procap please? How do you embed your charts so nicely from investing.com?
