Opportunity knocking

I think the risk v reward setup for SFX at present is very compelling. One for the contrarian investor to get excited about.

Looking at the medium term - weekly setup first, Iam comfortable that we have now seen the $0.30 support level from early 2016 tested & respected. This lining up with the RSI and stochastics both oversold. With the price action also trading below the bollinger band, the opportunity for this to snap back inside is high as the share price can move out of deep oversold levels quite quickly. Once the foot comes off the throat in terms of those wanting / needing to exit into the FY end, I think we can expect to see a move back to $0.50 as the first genuine target higher.



The daily setup is interesting where i've identified the period where Colonial and KIS have been active on the offer exiting on market. The share price popping back inside the lower end bollinger today is a good sign, i'd like to see this price hold on Monday vs test the 30c region again though. RSI dipping back into oversold territory for a second time, with the stochastics also oversold, but looking to cross over. I think we have either seen the bottom or aren't far off a turn. I think once the market has some comfort that we aren't about to about to be met with another wall of selling, it can and most likely will skip on higher pretty quickly.