I’m no expert but when I look at NSL this past week there are a few things I notice:
Market depth on the buy side has increased 25% from where it was last week, the sell side hasn’t changed. Heaps of buyers waiting a few pips off the pace ready to grab a bargain but the sellers aren’t interested in going that low, all the panic sellers from the bounce post trading halt have gone, and any decent volume (say 1 million +) is currently stacked at 2.6c or above.
If you look at trading data from the past few days you can see bots selling down into 2.3c every half hour like clockwork, trying to keep the price down and encouraging someone to dump into 2.3c, probably to fill the couple of big orders sitting there.
I’m no chartist but when you look back 6 months you can see the current price of 2.4c has historically provided support – mid May and with the trading halt in Sept and currently, and provided resistance – mid July and early Sept. The few dojis the previous 3 days confirm 2.4c is a key threshold and that the share price should now take off one way or the other. Indeed, it opened at 2.4c today, up from the previous 4 days.
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We are expecting good news from NSL very soon. Good news, combined with market depth, order values and volumes, bots selling down, and my own amateur technical analysis of the chart, suggest to me this stock is going to bounce and soon.
To all the buyers waiting in the wings, my recommendation is don’t wait much longer, in 6 months when this becomes a 10c stock you won’t be worried about if you bought in at 2.2c or 2.6c, you’ll just be glad you did.
Remember, nothing has changed on the ground in Andhra Pradesh, the locals going off to work at NSL today are blissfully unaware of what the share price is doing in Australia, all they care about is the job they’ve been employed to do and currently that is ramping up production to nameplate capacity by the end of the month.
If you want to get in on the action and be part of this great company, then get in while you can.
IMHO and DYOR, obviously.
