I am still very sure that PLS has been in what Wyckoff called the Accumulation Phase. The unmistakable sign of the Phase is when the share price moves within a trading range. And PLS share price has been moving within a trading range since last October.
However, it is clear to me now that I identified the latest trading range and thus the stages of the Phase incorrectly toward the end of March.
My marking of 3.50 to 4.00 as the trading range seemed to have been correct. I set the Sign of Strength above 4.00. But when the share price broke out of the 4 dollar line on 28 February, I was not sure if it was the right SOS that would push the share price into the next phase. The reason was the breakout was done with a huge gap-up, which seemed to me to be artificial. I said then the share price would go back down below 4.00 to consolidate. And it did.
Looking at the way the share price moved after that, I was suspecting that a new trading range was forming, and I thought that it would be between 4.00 to 4.50 (
Post #:72919643). Moving from 3.50-4.00 to 4.00-4.50 seemed logical to me. My suspicion that a new trading range might be forming is also based on what is mentioned in StockCharts.com about what can happen after SOS:
On 23 March I marked 4.00 to 4.50 as the new trading range and waited for confirmation (
Post #:73026275). But the confirmation never came; the share price never reached over 4.27, and I abandoned the idea of a new trading range. I returned to the $4.00 dollar line as the breakout line. So I thought the accumulation was already in Phase D and ready to take off. When the share price closed above 4.00 with a wide spread and decent volume on 17 May, I thought that was the point of no return to below 4.00.
While in reality, a new trading range at a higher level had been gradually forming in front of my eyes. Not between 4.00 to 4.50, but between 3.80 to 4.20! It is obvious now. I think it also explained why the double bottom couldn't break 4.20. But I never suspected that until last Friday afternoon. I think that is because I had never experienced witnessing a trading range moving to a higher level. It would be my first experience if what I think about this new trading range is right.
Judging by the patterns that have been formed, I think my marking of 3.80 to 4.20 as the new trading range is right. And if it is indeed right, then the share price will move back within this trading range if not tomorrow then by mid week.
(20min delay)