Morning everyone, well it's another day, another bar on the...

Morning everyone, well it's another day, another bar on the chart and another reading of the tea leaves. This post I'll be giving my interpretation of the daily chart.

Names, I think the cup and handle pattern has failed as a pattern in it's own sake. What I mean by that it I am unsure of the context you were using the pattern. Or what you wanted it to signify (ie: a long entry position? A market bottom?). As an entry position it has failed in my book and the bottom of the cup isn't into fresh low prices (there are lower recently enough to the left) so not signifying a market bottom. But I digress.

What I noticed this morning is how similar yesterday's bar looks compared with the bar on 04 Jun (red vertical line) and yet how in a contextual sense they are almost polar opposites. They have the same closing price, same bottom and their top is only 0.2c different. A brief description of the 4-Jun bar. It is a long up bar on massive volume that finished the day in the bottom half of it's length. This showed me that there were a massive amount of sellers waiting at the top area of the bar and any attempt at a rally was stopped then and there. The price was then moved down to test if sellers were still there in the area of the bottom of the cup. As there is little volume in that area it shows me nobody is really interested in selling large amounts of shares at those prices at this time. The price then cautiously rose making the other side of the cup.

As I said earlier, yesterdays bar is chalk to the cheese. Again it was a long bar but this time going down only on 1/7th the volume with a low of 7c and bouncing at the end of the day to 7.6c. That the bar finished well off it's low of the day on average volume signifies to me that the seller's aren't really there anymore and the downwards move was countered with very little effort unlike the 4-Jun bar.

Other than the high volume area in from late May to early Jun which I described yesterday, this stock has been fairly listless and is basically trading sideways with an ever so slight upwards creep (about 0.1c per week).