Bit of a meltdown... On the forum. Popped in to check some comments on the new FA picture.
When things like this happen, it pays to take a step back and look. One of my last analysis I gave before heading off suggested that our pull back had room enough to go back as far as 0.425. I also said that I certainly hope we don't see it, but here we are.
So step back and chill with me.
- Huge positive fundamental additions to IMU
- ASX200 pre-market auction at tomorrow's close. This will be a doozy - I'm trying to be in reception for it. (currently on top of a sand dune with half a bar dropping in and out)
- Charts indicate we are in a zone to create a natural base
- Many strong support levels here.
- Huge positive fundamentals and asx200 tbmorrow. Yes emphasised again.
Tomorrow afternoon, potentially hundreds of millions of shares will change hands during the closing auction. This will be the third time in recent history IMU will be the focus of some of the largest fish in the sea trying to get a(nother) slice. MSCI inclusion, asx300 inclusion and now asx200. Tomorrow's auction will probably make PH's sale look like a day trader.
My best guess is that PH's sale, along with the current unjustified(FA) pullback is all jostling and positioning for tomorrow's close. Keep in mind that the asx300 auction traded at 0.445 from memory, surprise surprise.
MonthlyOur monthly chart puts us smack bang in between the 50.0% & 61.8% fib of the last swing high. This is historically the bottom of IMU's pull backs. Volume isn't anything to be concerned about imo. However come tomorrow closing auction, the volume will be gargantuan.
WeeklyWeekly chart shows our key levels - the least of which is the old 0.46 zone. The yellow e21 on the weekly is about as strong as we get coming in around 0.450. We have the ever reliable 0.425 old guard, the fib from last Nov. Volume seen better here, that we are actually on decreasing volume for this run lower.
It is my belief that the last week or so price movements are directly related to tomorrow afternoon. I also believe that much of the loss in the share price will be gained back quite quickly, although the end of year selling may slow this a little bit. All bets are off tomorrow - we could see a massive stop loss run tomorrow like with the MSCI entry only to finish much higher. I expect much volatility, if not in the share price at the very least in the volume. Likely our final trade at 3:59:59 will be the auction price, but it would be nice if it's a true bidding war. Also remember - it's the close that's important, particularly the weekly. We haven't actually technically broken the major support zone between 0.495 and 0.525 yet because we have not closed under it. The big fish are ruthless but not stupid.
(20min delay)