In the last fortnight, KGN paused from its previous rally, and...

In the last fortnight, KGN paused from its previous rally, and consolidated in a range somewhere between $16.15 and $18.29.^[1]

In a way, July 30th was crunch time for the chart (yellow circle). It marked a convergence of the consolidation range and the historical trendline of support that began in June.^[2]

So what did KGN do at that point? It could have corrected big time. But instead, it bounced from that point.^[3]

Shortly after, Victoria entered into a state of disaster, and the stage 4 lockdowns for Melbourne were announced. A few days after that, KGN gapped up to about $19 - another all-time high.^[4]



In this current trading range, the relatively large lower wicks (compared to the candlestick bodies) suggest repeated profit-taking, followed by recoveries in the afternoon. Daily trading volumes have fallen for five trading days in a row, with Friday's volume of 409,000 being the lowest for some time.

With current market capitalisation of almost $2 billion, I think back to the views of Matt Williams and Catherine Allfrey that were posted to this forum on June 13th. Both of them said it was time to sell.

If you took their advice and sold, you would have missed a 40% gain since then: