Are we at a critical level?Not a good week, we dropped from 2.1...

Are we at a critical level?

Not a good week, we dropped from 2.1 to 1.7. Very high volume one day, when 1.8 and possibly 1.7 was being taken care of. Today on a much smaller volume, we lost a pip, from 1.8 to 1.7.

So where are we? In late April, we reached around here. Several days we finished at 1.6. For 6 consecutive days we touched 1.6 as low. Today we touched 1.6, but have not yet finished on 1.6. At that time, after a big struggle, we held 1.6. The question is - can we hold it again?

I don't think that is an easy question to answer. Markets slightly different. Timing - June tax transactions - different. So we will have to see what happens here.

If 1.6 holds, I think it will be very positive, including charts that will show double bottom. But I have a feeling, all those selling, will make a big effort to see that it does not happen. Why? You don't want to sell everything at the lows and then see a rebound. So if they have any ammo, they will make an effort to push down. So a tough battle coming up.

So what's in the positive? Stock has been hammered and trading at its very lows, based on several month pattern. Just on odds, it is possible and odds of going higher may be better from here. The risk reward has become very good, relatively, anything can happen though. There is a chance, buyers may step up. And we could suddenly see us in 2s. Of course, a lot is now dependant on a catalyst - any announcement etc. And that may drive the direction as well.

Personally, I have added some heads at 1.7 and oppies today another 700k at 0.8. My heads as I wrote last week at 1.6, my oppies at 0.95. I have reduced my oppies slightly, but still above 0.9. My heads didn't get hit today at 1.6 - I was hoping for. If we have come here, let me have a play. it could still happen next week, so lets see.

So what may happen next week? An announcement will provide direction. Otherwise technicals may play. Our resident expert chartist has said our double bottom works very well, for a big big rise. Lets hope we get that right and get in the direction most holders are thinking it will happen - it may be matter of time. All the best.