The last fortnight of trading action has shown a pause to the...

The last fortnight of trading action has shown a pause to the existing uptrend,^[1] with short-term resistance at 18.29 or so.^[2]

To put this into context, there was a pause in May at 9.00, but the uptrend resumed after a fortnight or so.^[3] Late June saw a 14% correction in 3 days - only for the uptrend to continue.^[4]

But the current pause is longer than May's pause, and last week's intraday highs have slipped for four days in a row. Daily RSI has also retreated to under 70.



The weekly chart shows that all streaks must come to an end. A fortnight ago, KGN closed at 17.00, breaking a 17-week streak of green candles - perhaps one of the ASX's longest this year. Last week nudged higher and therefore ended with a new green candle:



Moving away from charts, I note one positive and one negative.

Starting with the negative, current attention is focused on the Federal Court judgement. KGN's announcement framed it as "the Federal Courttoday upheld allegations made by the ACCC...", but I think what that really meant was "Kogan was found guilty in the Federal Court". As a holder, I hate that kind of spin. I don't see the point of polishing a turd - even if it turns out to be a small one.

Ending with the positive, it seems less attention has been paid to what all Directors did during the recent Share Purchase Plan:

• R. Kogan - bought 5,240 more shares (through two entities)
• H. Debney - bought 1,561 more shares
• D. Shafer - bought 2,620 more shares
• G. Ridder - bought 2,620 more shares.

If I understand correctly, each Director applied for (and received) his maximum possible allocation under the SPP. If 4 out of 4 Directors are buying as much as possible, I think that sends a terrific signal to the market about their confidence in KGN, moving forward.