Guys - my charting assesment is this. Most likely scenario is that we have hit the fibbo 50% retracement today at .35 (.30 - .40 mid way point).
I think reading the first wave (including it in the fibbo calc) into the retracement would not be in my experience a valid approach. (Certainly not by the price/volume behaviour - impulsive wave up). We have seen a few small corrective days due to a number of seasonal factors (end of the month) and also a forced seller yesterday due to settlement obligations that shook a bit of confidence. )Also bear in mind the trajectory that the SP needs to take to get to the levels we expect (even based on the fundamentals.)
Where I do agree is that we will move into a short term consolidation pattern. By that I mean, slightly lower highs with a flattened bottom (circa .36). We have already seen that today with an extended candlestick doji pattern. (open .36, close .36 - low of .35, high of .35). The lower highs are likely to unfold as setting up already - .40, .39, .38 if you get my drift. We will then dry up in volume ready for the next move. Remember we are 3 cents off the last new high close - so we need to be reasonable.
My guess is that we will see, pending DOW and macro factors, a green day tomorrow.
Charts need to take time - true, but I will be very surprised if we do not exceed .40 in December. I say that based on TA underpinned by fundamentals.
SDL Price at posting:
36.0¢ Sentiment: LT Buy Disclosure: Held
