27-Nov-2023 : Keeping it Simple with Price Action & Technical...

27-Nov-2023 : Keeping it Simple with Price Action & Technical Analysis..

As a Technical Analysis hobbyist, I am many times amazed by the stories that Charts tell, given you know the language to understand the story. And sometimes, it's always better to take a long bird's view of the story, which gives you a better idea of the terrain that the stock is charting.

Checking on Marketscan site today, MSB is the 10th shortest stock on ASX. Now, that's a stock that is in need of some love.
And looks like, love is on the way. So probably, shorters need to get wary now.

Let's see what "my" eyes see when I look at the charts on a 2- month timeframe.
* MSB had a dream run between Nov'2009 and May'2011, with the stock jumping 700% in around 1.5 years !! What happens when you run a car at full throttle for too long ?? It peters down. And so it happened with MSB.. The "Smart Money" handed over the keys to the "Weak Hands", and the stock since then has corrected back to where it was back in Jul'2005.
* To those who are admirers of the Waves, it looks to also have completed or close to completing the ABC wave.
* Now look at the HUGE volume in the month of Jul-Aug'2022. It doesn't make sense to beat a dead dog !! Or does it ?? Well yes, if you are convinced that the dog will revive with more beating And so it seems to be working for MSB, with the Indicators showing
a positive divergence ( Not shown on my charts though - DYOR )

This is still a highly shorted stock. Tread carefully and do your own analysis... My analysis can have mistakes, so DYOR and DO NOT TRADE WITHOUT A STOP_LOSS.