What an uneventful week with SP closing at 15.5c everyday. As predicted last week that "
SP would continue to go sideway". It has done exactly that.
Thanks Akki in mentioning the Head and Shoulder pattern. There is a kind of slanting head and shoulder pattern and I am not comfortable in calling it. Anyway I have reluctantly drawn a horizontal head and shoulder line (purple) on the daily chart, and its "predicted" reversal zone (light pink) with trough at 10.5c, recovering by 28.01.2021. I could not see how it could go down to 10.5c without any negative news. The end of cycle around 28-Jan 2021 also doesn't bow well with exciting events coming up, more below.
Head and shoulder pattern is not always reliable. There have been plenty of spectacular failures in the past. One example that caught my eye was shown below. SP exited the H&S pattern and went North strongly on positive imputus.
Back to the fundamentals of PYC, we all know that 3 drugs have been announced and there are more in the pipeline. Tox data pack in Q1/Q2 2021. Possibility of inclusion into ASX300 would cause mandatory buying from instos and funds in Q1 2021.
15.5c is a magical level because CR at 17c would cause a dilution of 9.09% and that comes to 15.45c. This week, the SP has been bouncing at this level as plenty of buyers would see it as real value at this level. As I have mentioned before, Don't be surprised that short term investors would be happy to sell because it still represents a very decent 281% profit from the 5.5c CR only 12 months ago. Where could you find no brainer investment other than PYC?
The daily volume has been decreasing and that would signal the selling is towards the end. Monday's top was 17c, apart from Tuesday, last 3 days' top were 16.5c. So there are still buyers out there.
PYC has been invited to present at the 3rd Annual Evercore ISI Virtual HealthCONx Conference on December 2nd, 2020 at 9:45 AM US Eastern Time.
Evercoreis the premier global independent investment banking advisory firm dedicated to helping clients achieve superior results through trusted independent and innovative advice.PYC's exposure would certainly raise the awareness of US investors and more sustained buying and price recovery would commence from the middle of next week. Fast Stochastic has already flipped upwards. I have included previous buy and sell signals to show you those charts are not just looking pretty, they could help you to make money too.
These are my analysis and TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.
Technical analysis is only one of many tools we could use. Fundamental analysis would also play an important role especially in PYC where
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