In response to a question from W1, I posted last night that I...

In response to a question from W1, I posted last night that I thought price might retrace to around $3.49 - $3.50 before setting itself for the next leg up. I note that it dropped to $3.53 this morning, but what is really pleasing to see is the speed with which buyers jumped in to push price back up to a high of $3.75 before settling to its current level (at 13:50) of $3.73, one cent above its open. That was a really pleasant surprise.

At this stage the Volume Weighted Average Price for today's trading is $3.6813, on the strongest volume we have seen for the last 13 trading days - already over 684,000 and we still have just over two hours trading to go.

These are all very good signs to my way of thinking and I am tending to write off this morning's drop simply to the departure of those speculators who bought in on the prospect of a quick profit from the DFS announcement and have moved on when it was obvious that one wasn't coming.

We may not be looking at a retracement of the duration I anticipated when I wrote my comments last night, even if the magnitude was about right, and that's a very encouraging signal. It also backs up the comments Phillip_K and others have already made today about a good, solid DFS that we should be pleased with. The market certainly seems ready to support price, based on its content.

Looking good!

Regards,
Bones