Hi All,I bet there is alot of panic amongst some of you. I also...

Hi All,

I bet there is alot of panic amongst some of you. I also bet Smart Investor 22 is sniggering. Anyway I dont see any need to panic. Here are my reason based on the chart:

1. The trend is still up. very much so. We had a clena break out from 5.8c so we are experiencing, technically, a retracement.

2. The retracement so far to 7.4c is exactly a 50% Fibonacci pullback so its in line with expectations. Statistically, 80% of pullbacks in the Fibonacci Zones of 50-61.8% are the highest rewards, so good buying opportuities may take place at these levels or at about 7.1 or 7.2c.

3. On the Weekly chart, the weekly 20 EMA is at 7.2c so support should also be found at the current levels give or take.

4. The Bollinger Bands experienced a tight squeeze prior to the nice run up and then popped like a spring to the upside. Expect the price to revert to the mean of between 6.8 - 7.2c like I mentioned in a previous post.

5. An interesting study is volume in recent days. There has been an exponential drop in volume in the last 3 days of declining prices as investors are reluctant to sell. This is quite a bullish sign. When volume dries up and activity slows down, then this usually follows with an upday with solid volume as money pours in from the sidelines to take advantage of cheaper prices. This is classic pullback action.

Time will tell.But the bulls remain in the upward trend at this point.

Cheers
Babylon1