So back to some TA....... Many indicators were over cooked due...

So back to some TA.......
Many indicators were over cooked due to the steep rise over the last few days. Short covering or not, the importance of this volume we've had is not to be omitted. There is absolutely nothing wrong with the announcement we've had today. If there was, this would have dropped right back down into the 4's, which it did not. The "sell the news" effect was due to profit taking and over cooked chart. Totally normal and healthy in these early stages of a trend reversal, should it prove to be one. Time will tell I guess, but so far, so good.

There are two positive and preferable scenarios moving forward.
1) Consolidate here between 6 and 6.5 for a week or so forming a high base to launch from for the next move upwards.
2) Form a bull flag over a few days at least and test the breakout at 5.3c. There is very strong resistance here from previous price action as well as moving averages like the 50SMA as well as the 21EMA in a few days. Should this scenario eventuate and then break to the upside, then 11c will be the next target.

Two other scenarios which are not preferable imo are as follows:
1) Price will keep making new highs from here. While this sounds good, in order to have a sustainable rise, it needs to build a support level.
2) The support at 5.3c is broken. Should this happen (which I do not think it will) then we will be back into the 4's rather quick. This is the bear case scenario, but probably unlikely.


GL all and let's keep those shorts on their toes.