July 4. Looking good, higher close above the $0.105 resistance and the rising red MLH line. Lower volume. Looks like the mm fishing to see if any more sellers are about & didn’t find any. Divergence indicator right again.
July 5. Nice rally. Moving the sp up no sellers yet. The move today is right on the cycle line. Closed on high ($0.12) Larger relative increase in volume. Powered through the $0.105 resistance level & cleared the congestion area into the next range box. Large wide spread candle. Expect to see a follow on but also a retest of the $0.105 level at some stage.
Todays close at the dotted green ML parallel. This has been the approximate top for the previous two rallies.
Todays close places the sp into the next range box so the volume appears as selling/churning. If the sp retraces back into the old box then it is churning & therefore mainly mm in charge.
There were 5.6 million shares traded/accumulated at the low side of the range we have just broken out of for an avg price of $0.102.
July 6. Looks like the dotted green parallel is resistance atm for this rally. Pulled back from that to retest the base of this new box. Most of today’s vol was at the low. Could drop back down tomorrow or the mm could just accumulate at the $0.115 area but the vol model shows as selling today.
July 7. Failed to hold in the new box. Very low vol today. Volume still falling & still selling/churning, todays close at the low ($0.11) was after the close on 30k only so think tomorrow may rally & retest the top of the new box. Would have to close above $0.115 to be a valid rally or this is just another small P & D.
July 8. Increasing volume. Model shows as Selling/churning. Todays close at the resistance $0.115 & the rising vol may indicate another attempt to break out of the range. The previous attempt early in the week has failed but on lower vol.
Added a new fork today (Blue). Todays low is on the rising line. Watch next week for a continuation or drop below to the Red MLH
OK, looking back over my notes for the week & the previous Friday (4th July).
I thought that the mm might have been fishing for sellers the previous week & didn’t find any more at the lower level of that trading range so the sp was moved up during that week on increasingly lower volume.
The volume on Monday (5th) was the lowest since the sp hit its low the previous week & at the time appeared as selling/churning. The sp closed above the prev weeks resistance, this coincided with the time cycle noted on the 2nd.
Tuesdays sp spike & high volume showed as selling/churning.
Wednsdays sp appears to have reacted to the previously projected down trending dotted ML line as it did back on the 30-31st May. & sold off on lower volume & appears as straight out selling.
Thursday s vol was lower again & appears as selling/churning & Fridays increasing vol & higher sp points to this latest attempt to rally as nothing more than the work of the mm turning a profit on those that were accumulated during the previous week. The rising vol could indicate another selloff down to the support base or another attempt to rally up into the next range box (where they can sell some more).
My model shows that out of the aprox 3.9 mill accumulated the previous week (27/6 – 1/7) at an avg price of $0.10 and 2.1 mill were sold @an avg of $0.115 leaving aprox 1.8 shares free carried.
Looking at the daily chart I am guessing that the sp will retest the low at $0.105 again before trying again to breakout of the current range.
There is a cycle line related to the green fork approaching on next Friday and I expect the rising red MLH line to be support for the coming week.
The weekly chart shows the sp rallying after making a higher low & the doji candle the previous week but on lower volume. The immediate support is at $0.105.
What I like about the weekly is that it looks very similar to the daily the previous week & at the start of the week just gone (ie. It ticked above the resistance then closed off its high right on that resistance after rallying off a low. The support is also $0.105.
The monthly after only one week in is showing the early signs of a bullish divergence which could disappear or strengthen during the course of the next few weeks. Wont post that one yet.
PSY Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
(20min delay)