Pre AGM trading

Another interesting week.

Despite the manipulations it looks like the $0.18 support level has either held or will now become the resistance until they stop their games. Unfortunately that won’t happen until “they” decide that they have accumulated enough or there are no more sellers.

I don’t imagine that an AGM that is lacking substance will be enough to stop it either.
If the AGM does not come up with something more than a rehash of past updates then I expect that there will be a major sell off or should I say more manipulations by the big brokers/instos or whoever is behind the current selling while they suck up loose shares. Whoever they are they clearly like PSY future.
There is no fundamental reason for any selling so I am guessing that the majority of the volume traded is simply the same brokers/funds or whomever it is churning their accounts to suck out weak holders.

This sell down has clearly been manipulated as usual by one or more parties who have used the usual methods at their disposal to force the sp down while they accumulate.
All of this has been done with impunity & a clear lack of interest from ASIC in these matters. It’s a different story when the sp rises though.

Anyway enough of that.
The $0.18 close may be confirmation of support or it may now be a bit longer term resistance, we will have to just wait & see.
I would have preferred to see it close above $0.18 for a confirmation of support as it was trading below that for the previous two days

Looking at the daily chart the sp is still firmly in the grip of the down trend channel & is currently hard up against the short term down trend line & has followed that down for the last 8 days.
During those last 8 days, support was found on or around one of the medium term rising trend angle lines in the $$0.185 – 0.195 range for 4 days before dropping almost to the bottom of box 7 before rallying from there.
The sp is also in a clearly defined congestion area formed by the rising & falling trend line angles as well as what may now be resistance at $0.18. Time will tell on that.

The candle Friday appears positive but maybe not quite big enough to qualify as a piercing candle (bullish reversal). It may well be enough though & confirmation would be an open at or above Fridays close & a higher close back up around $0.19 or higher
If the small rally off Fridays low can be backed up Monday with a push back through the immediate resistance then I would be looking at $0.19 – 195 to then become resistance.
If it can be forced through that area then there should be a clear run back to the $0.20 – 21 level which is the mid-range of box 7.
A lot of ifs & buts.

I think the base of box 7 ($0.165) is still the major support just now but it may not get there if $0.18 has remained as the support.
If the sp does continues down though then that is where it will meet the historical rising uptrend line placed from the lows at $0.10. I would expect a rally from there again to keeping box 7 alive.
If however it falls through the base then I would expect that it will find its way down to at least $0.135 with a minimum target of $0.15 & closing the gap.

At this stage though & in the absence of any contradictory evidence from the company I still believe that the sp is conforming to a normal consolidation pattern after a breakout from the long term downtrend back on the 7 Sept.
This current consolidation is hovering at the 50% retracement from the high after that breakout.

The weekly chart shows that after that breakout, it has retraced 50%, rallied & retraced again making a higher low & a spinning top candle in the process.
The weekly chart still looks bullish to me & the weekly divergence that had formed & picked the downturn has now run its course & is now in sync with the sp.
The weekly close also brings us back into the flag pattern (if is still considered a flag) & shows thet $0.175 is the weekly support.
To verify that the breakout of the flag is still happening then I guess a low of $0.18 and a close back above $0.19 or higher would convince me of that. A close above $0.205 would certainly do it.
So despite the daily chart looking weak I believe that the weekly is bullish & therefore we will see a higher close this week before the AGM.