So another week ends (and month) and surprisingly the week...

So another week ends (and month) and surprisingly the week prints a red candle as it closed well below where it opened but I don't see that as a real negative in the grand scheme of things and here's why.

Click on chart to enlarge.


Firstly, you can see when we put a Fib retracement rack on from the breakout candle back in October to the high late December that the SP has retraced to the 50% level. Now the optimum retracement level IMO is the 62%Fib but anywhere between 50-62% is regarded as the norm. Had it retraced a bit further there was a big gap to fill but there you go, I believe that in this situation the fundamentals dominated the TA as often happens in low SOI good stocks. IMO.
Therefore we can put it down as the SP has had a satisfactory retrace and has moved on from that with demand taking over.
Secondly, on the weekly we are also seeing higher highs and higher lows which is every investors goal, keep that going and everyone is happy and announcements have been supporting that. (whatever they've been).
And thirdly, MACD has been arcing up nicely looking like it's wanting to cross to the positive after the retrace and MACD on a weekly chart is a great tour guide for momentum. So that's well worth watching over coming weeks, would love to see it cross by end of June.

Now the above is just a quick overview of what the weekly chart is currently indicating and a lot of things can change in a week so don't come after me if the market wants to do something else.

The Daily chart is a lot messier which I love as it provides opportunities but all you need to know is that the overall trend is up as it's trading above the bollie median level and MACD supports this status. The daily is gappy above and below but don't let that bother you as IMO this is just a by-product of how a ASX200 stock trades. Having said that, I'd be surprised if the above gap at 23.10 doesn't get closed shortly if momentum continues. Again, the market may have other ideas.



Shorts / Hedges have changed very little in the past week. And never think there will be a short squeeze as they just don't happen very often but I still feel it's important to watch as if there's a sudden drop or large increase then a move may be on.


And dear Jimbo, I closed out again yesterday afternoon making it 3 from 3 for me this week from this wonderful stock and that's the last response I'll ever be making to clowns like you again.


Cheers