"Who can tell the difference between a DCB and a genuine upturn ?
Personally I don't have a clue one way or the other. Does anyone have a clue ?"
Yes, it is almost impossible to tell the difference between a DCB and a genuine upturn, because a DCB is known only after the fact. But technically we can assess it and come to a reasonable conclusion whether a "DCB" has occured or not.
Firstly it is very likely a DCB if the upturn happens unexpectedly from TA point of view; that is to say not detected or indicated by TA. And secondly it is very likely a DCB if the size of the upturn is not proportionately supported by the volume (Wyckoff's third law: Effort versus Result).
Now, was PLS upturn today indicated by TA? Yes, it was. Last Wednesday night I showed a bullish divergence in MFI and said that the same as AKE, a reversal is overdue!
Is PLS' massive bullish engulfing candle today proportionately supported by the volume? Yes, it is. The volume today is about double the average daily volume.
So I think it is very reasonable to believe that what occured today is not a DCB, but a real start of reversal. Technically at least.
PLS chart, page-18298
Add PLS (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$3.31 |
Change
0.020(0.61%) |
Mkt cap ! $9.968B | |||
| Open | High | Low | Value | Volume |
| $3.23 | $3.41 | $3.23 | $60.35M | 18.16M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 152099 | $3.30 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.31 | 31295 | 3 |
View Market Depth
| Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
| PLS (ASX) Chart |