Hi W1,Well, the DFS certainly did not provide any impetus to the...

Hi W1,

Well, the DFS certainly did not provide any impetus to the share price, so it will not surprise me to see price take a breather over the next few days to consolidate after its recent strong climb from $2.78 on 25 August.

Price has not yet broken down out of the steep, narrow channel that I drew on the chart within my Post 5751378 of 24/09/10 13:42, but it seems that in the absence of any strong upwards impetus, it soon will and the ambitious, potential target area that I indicated on that chart will not be achieved within the current rise. The muted reaction to today's DFS will see to that.

Price will still work its way back to the Median Line as shown on that chart, but the chance of a retrace beforehand is now much greater. No chart required to understand that assessment - it's just common sense. For example, a 0.382 Fibonacci retracement of the gain from $2.78 on 25 August to yesterday's high of $3.92 would see price pull back to around $3.49 - $3.50. So, although this is not a given, it is certainly a possibility in the near term. In many ways this would be a healthy thing anyway, as price needs to consolidate and build a firm support level from which to launch the next significant run up.

I will be watching price closely over the next couple of days to get a better indication of which way things will play out. I'll post an updated chart when things become a bit clearer to me and I have something a bit more worthwhile to contribute.

Regards,
Bones