Time for some more thoughts, with another week in review:
The weekly chart shows that the previous 5-week rally - a record for UWL - is over:
Last week opened at $1.16 and fell to $1.05 by Friday - a loss of 10 per cent.This was the first week to experience a loss since mid-April. Back then, it ended at 48.5 cents after opening the week at 56 cents. In comparison, the fall that week was bigger, at 15 per cent.
Comparing mid-April with last week, the former had no upper shadow. It opened the week at a high, and fell after that. But last week had the opposite shadow pattern - no lower shadow, but an upper shadow ranging from 1.16-1.23:
Weekly trading volume was also the lowest since mid-April. Volumes aside, the last time that UWL's price fell in a week (after a multi-week rally), it began the first week of multi-week consolidation:
Some posts have suggested that the next move will continue down, towards the $1.00 or $0.96 mark. Assuming that occurs, it will be a further loss of 9%.
Switching to the daily chart, last week experienced one of the larger two-day falls in the history of UWL. There have been other falls for 3-5 consecutive days - but once those ended, the price recovered:
Having said that, a trend of support since late April (yellow line) was breached:
One thing to consider is whether UWL will only rise (dramatically) on announcements, or if it can rise steadily on no news. It is not a mature stock yet, and may be relatively unknown.
With $15 million now in the kitty for mergers and acquisitions (M&A), it may take a while to finalise any new (or big) deals. One question is whether future M&As will be for several (smaller) companies, or fewer (larger) companies.
