Consolidation, profit taking, weakening or just another Friday trading?.
Yes RDN lost 6 pips to finish on 6.8. Our volume was very good, over 170m shares traded. Open on 7.5, high of 7.6 and low of 6.6.
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So what happened today, why did we drop? Not sure. I expected that we may do a new high. To be honest, I was surprised in the morning when it didn't move towards 8. Not crossing 7.6 set up a weak day. It could be both consolidation and profit taking, nearly 50% gain in a week, few hundred percent in few weeks, so lot of punters sitting on good profits. Also not unusual for stocks in an uptrend to keep checking supply at lower levels. Some day traders may have bought in morning thinking it's going to go up. When it didn't, they may have started exiting, creating sell pressure. Or it may have gone too high for some, away from moving average, so waiting for those to catch up. The p & do theory can also be there, but at this stage with the strong buys, transfers etc, odds are not high. Just my thinking, could be wrong, so please dyor.
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Personally I let go 40%of my shares at 7.2. If 6.4 was not looking like holding, I would have exited completely. Also usually I sell 80%, but today 40%, because I thought it's still in upper range. Some may be thinking I am like a day trader. I will admit that I play this phase with very soft hands. Don't think twice before exiting. This phase of nearology, potential, hope and hype.
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Early last year, I got caught out in few stocks, big gains and then big drops. I kept holding. Since then I have played around 50 Li stocks with soft hands. Reason being success rate is very poor. Close to couple of percentage. Except AZS and WC8, none have made it. But many gained upto 300 to 500% and then to give back all. That's the stats. I do weekly reports across 96 Li stocks, and I see it every day. So I am playing probability without emotion.
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So what may happen next week? If we get another good week like current, we may touch 10c. Buying has been strong and consistent. So odds are good. But as I wrote yesterday, we are still at the mercy of big traders, and we don't know their plan. It things go bad, it will be good to hold 6.1,that will be very bullish. But if things go well, 10c will attract the punters like a magnet. Recently I was playing WC8 and writing $1 will attract punters like a magnet. It reached $1. So we could also reach 10c. Will that happen? Let's hope so. Enjoy your weekend and all the best.
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