As predicted in my last post, "SP would continue to linger...

As predicted in my last post, "SP would continue to linger around 17-17.5c unless good news is announced. Hopefully by end of this month", sideway consolidation continued during the week.

On Friday 20.11.2020 between 12:03 and 2:21PM, some 3 million shares were traded at 16.5c. SP recovered to 17c in the last 1.5 hrs of trading. It is now right on the bottom of the uptrend channel. Technically the uptrend is intact. In fact, if SP maintains at this 17 - 17.5c level next week, it is still in the uptrend.

The 82,776,706 shares shortfall worth $14M from the CR is still there to be sold at or above 17c in the next 3 months. It would not be in the interest of PYC to dump them in open market. They would most likely be taken up by instos and funds towards the end of the 3 month which would be Feb-2021 at an unbeatable "discount" if SP has gone up to 20c+ by then.

The Bull Case:

• PYC is very likely to be included into the ASX300 Index in Mar-2021, SP would start to move upwards in Jan/Feb-2021. So some instos and funds might scoop them up by the closing date of 11.02.2021.
• Large animal toxicity readouts in Q1/Q2 2021.
• More drugs in the pipeline to be announced, e.g. "Neurodegenerative disease #1" in the Central Nervous System (see my Post #: 48879325).
• Next resistant level is 18.5c then 20.5c (last peak).

The Bear Case:

• General market weakness caused by worsening Covid infections in US and in Europe. Some vaccines are promised to be available in 8 weeks time. The market could overheat before then and pull back sharply if that vaccine is not materialised.
• Messy transition of power from Trump to Biden could cause market volatilities.
• Next support level is 16c at 50% Fibonacci level.

Next Week:
As the banks, travel industry and shopping centre shares are hotting up, some investors might want to liquidate their PYC holdings at par at 17c or with a bit of luck at 17.5c. SP would continue to go sideway.

These are my TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.