Well, is that the consolidation that we had to have?
Yes BAS lost 2c to finish on 17.5c. Our volume today was good, but less than last 3 days when we were rising, just over 14m shares traded.
So what happened today? Why did we fall?
Although any fall is not a happy state, but its not unusual to have this type of consolidation and back test of numbers.
Just recently, after having 3 green days, we fell on the fourth day - 8th of Feb. That day in my post I had written - "Usually in my experience, any rise or fall not driven by news but just technicals and sentiment, does take a breather usually after 3 days - no guarantee but probable. So not surprised to see that today. Usually these consolidations mean slight decline"
Now if we look at today, what happened last 3 days? No surprise, we had another 3 green days, so probability was again favouring for a consolidation, which in my experience leads to some decline. We rose from 15.5 to 19.5, today finishing at 17.5 - bang in the middle. So, from that perspective, it is still looking quite good, also following some text book style trading. If we can hold this and move from here, I think we could next time breach the 22.5 which is the next target. Also we could get an Operations Update this week, which can be another catalyst. Just from the technicals perspective, there is a good chance we may consolidate/hold or rise from here. Though probability is good, there is no guarantee, so please dyor.
Personally I had thought we may be weak towards the end, hence I had left my buys for the closing auction. Picked up few heads at 17.5 and oppies at 8. Lets hope they do fine.
So what will happen tomorrow? Tonight we have CPI data in US. That could provide strong direction. Although we are charting our own path, it would also be good to have general markets on our side. Its an unpredictable event where anything can happen - like a toss. But if we get good, or even neutral CPI data, there is a good chance markets will rally and that would give another boost to us. Will that happen? Lets hope so. All the best.
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