Hey Karlos, sounds like you're a few drinks ahead of me....guess you've got an advantage being a bit ahead of me across the pond :)
I've been looking at some charts and given today's action trying to work out just where we go short term. Discounting the potential or likely effects of a PTM announcement, which I'm now expecting late next week, my comments refer to possible activity in the earlier part of next week which I'll be trading.
Most technical signals have all been up until today, but now I'm seeing this as overbought and I started seeing distribution later today so pulled the pin at 5c in the CSPA after trade.
Looking at other TA tools for guidance, the Fib retracements on the SP rise from 12th Oct lie at: 38.2%: 4.3c 50%: 4c Given the momentum now, I'd say the most likely retracement level to come into play would be the 38.2% Fib (if at all!).
The gap we've spoken about at 3.7c is out of play in the shorter term in my view, although once we've had all the "good news" then perhaps this may come back into play during the earlier part of 2013 - when we're grinding away with zero news, 10 months to go before SML permit, frustration levels rising in the "quick fix" populace and our friends at Citi are getting bored again.
Looking back to establish potential areas of resistance, and as Pewal mentioned already, 5c is one of those levels and it came into play today. I see other areas where we may slow at 5.6c, 6c and 6.4c if I look back at the patterns between January and May this year.
Anyway, there it is. Happy for inputs from those with knowledge in this area. I'm a relative novice when it comes to TA, so always most appreciative for guidance from those with experience.
PEN Price at posting:
5.0¢ Sentiment: LT Buy Disclosure: Not Held
