low volume - eye on the prize

Nothing at all to be concerned about here guys.

Big volume on the way up followed by a very low volume pullback - perfect to aid accumulation.

There is very strong resistance on the daily chart in the 8.3 cents to 8.8 level.

We were very overbought on the daily RSI and the daily stochastics last week and just didnt have the momentum to break this significant resistance zone.

The overbought condition has since been alleviated ,I would expect the stock to stabilize around current levels and have another crack at the high 8s very soon... this time hopefully breaking them and never looking back.

Remember the technicals are just a piece of the puzzle here. I reckon we are definitely getting early signs from the technicals of a pending breakout, but its the fundamental picture that has the potential to drive the gains by multiples of the current share price.

* Recent purchases by NAOS and capital raising at 6 cents should underpin the share price.

* Basically have been told to expect more deals with big pharma....and no further capital raisings.

We have all seen the potential revenue curve for Phylogica if things go to plan - Mind boggling to say the least.

At current levels i think you would be hard pressed to find a better risk reward play on the ASX.

I Got my eye on the prize!