Are we ready for next rally?
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Yes BAS gained nearly 2c to finish at to finish on 13.5c. Although our volume was not very high, it was still very good and much better than last few days - just over 4m shares traded. We opened on 12, touched 14.5 and finished at 13.5. So very good trading today.
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Yesterday I had written "Everyone seems to be waiting for something to happen. But what is that something? The best we can hope is for our friends to come and do some line sweeps and we should be on our way". Somehow it played it that. Our friends were back today and they meant business. They have been soaking and buying up below - just to make sure that most sellers are exhausted - why? because then it becomes easy for a rise - less resistance. And we are seeing that.
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In the morning I had written that if the 13 wall gets taken, there is a chance we may finish at 15. The 13 wall was taken down decisively, we reached 14.5. Now a finish of 15c is begging for us - hopefully shortly, who knows it could be tomorrow. As I always mention, please dyor, as markets are volatile and anything can happen. I am talking here probability, and at this stage probability is looking good.
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So why are we are rising now? We all know that the fundamentals are very strong. A cash-flow company that does not a CR and sitting on a monster - PEL 182. That can take us places, things have to align,. but if it does - it could make a significant change for many of us. Again there is no guarantee, you need a lot of luck, so please check for yourself. That is on Fundamental side, what about Technicals? One of the reasons I am feeling very bullish is because of Technicals. We all know that we did double top at 22.5 and from technical perspective it declined. But recently we also did a double bottom, or should I say triple bottom at 11c. This was roughly 50% retrace from top. Last week I had written that I had done big buys on that number that day when we traded heavily on 11 as I was hoping for this double bottom. Fortunately it is playing all right. There is no guarantee, it does not always happen but one has to get more rights than wrongs to be ahead. Another stock that I write occasionally, WR1 went thru similar phase. It did a high of 252. Recently it did double bottom at 126, which again is exactly 50% from top. I was not sure whether it will go lower as markets were choppy and I had feeling there is potential to go lower, so I waited, but once it looked like holding I bought the next day average around 138. Today it finished in 180s. So doing a similar journey to BAS. sometimes it works, and with luck as well.
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Yesterday I had mentioned how some people take all credits to themselves when they are winning but blame others when losing. Now today we are coming across new logic - When BAS was dropping it was because BAS it to be blamed (its not good, etc etc). Now that BAS is rising - what do some people say? Its not because of BAS - maybe DOW helped, maybe XYZ helped etc. So can we see the similarity in those two situations? Oh well, its all right, we have to live with all.
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So what will happen tomorrow? There is a very good chance now that we could make our short term target - finish 15+. Unless markets tank, which I am not expecting (I have written more on that in link below), there is a good chance we will make an attempt, whether successful, it needs to be seen. I feel more comfortable now that our friends are here. Together we will do it.. Will that happen? Let's hope so. All the best.
(Link for daily Report on general markets)
https://hotcopper.com.au/threads/sya-daily-report.7085637/page-3#post-67049654
