Well have we completed the churn of 5s?.A decent day today but...

Well have we completed the churn of 5s?

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A decent day today but no fireworks. Also the lowest volume of the week. Very strong indications at this stage that sellers are probably getting exhausted.

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So how did the week go? Again decent and somewhat positive. Last week we were churning 4s mostly, although we had a fair play in 5s. This week it was the turn of the 5s with a touch of 6. So till now playing copybook, and most importantly, not trying to run away. Consolidating and moving up. This has a much better chance of sustaining the rise. Last week we finished at 5.3, this week at 5.7, so moving in right direction with gains of around 7.5%. At this stage without news and knowing CR was at 4.4 and few weeks back we were in 1s and 2s, I will take that.

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Some chartist had appeared last week and said we will see 4c before we go higher. That did not happen this week, but can still happen. But the probability has decreased. I am no chartist, but respect and understand charts, so always look at it objectively and not discard it. But I also know, as most chartist would, is charts are also about probability - there is no certainty, otherwise most chartists would be billionaires. So let's see, certainly not out of the woods, but odds getting better that we may not see 4c unless there is a bad news.

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Personally, no trades for me this week. When I first bought, my average was 4.6. Then I said I will buy more if it goes higher. So bought more last week as I said in my last post, average 4.8. That was buying in 5s. I will buy more if it goes higher, this time my buy will have to be in 6s. One of the reasons I did not buy this week. Hopefully it goes higher, but who knows, if price action is not good, I may have to do the opposite. But timing is good. I got out of some stocks this week, so can buy if opportunity arises.

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So what will happen next week? I still feel we are still away from a very significant news. But that has not stopped sp inching up. Sometimes we have to use gut feel and take risk, and get in early. Many punters, including me, are probably doing that. Damon feels and is talking as if he is on a winner. At this stage I am giving him the benefit of doubt. But for me price action is important, and I really like the price action. There is a good chance after some more churn in 5s, we may get into 6s. And hopefully finish in 6s. I am also hoping general markets don't tank, it's good to have neutral to positive market, it helps. At this stage I feel, probability is in our favour of going up. But as can be seen by my talk, a lot of things I am saying is speculative. So anything can happen, so please dyor. Have a nice weekend and all the best.