PYC (ASX) PYC Chart looks the goods

Originally posted by Medicine Man: ↑

For a moment I thought my computer or the ASX has been hacked! The Buy queue was virtually empty.

It is a FLASH CRASH!

There are many scenarios that would trigger a complete sell down like that. Those came into my mind are as follows.

Professionals at work - create a panic to cause the weaker hands to sell while they keep accumulating at a heavy discount.
Tax minimisation.
Someone needs money badly and liquidates the PYC shares at any price.
A trading robot malfunctioned.

andrewk65 you could be very close in in your guess.i.e. scenario #2 above. My guess is #1 given the timing of the Evercore ISI Conference presentation last night in the US. To the trader's dismay, the recovery was so fast and at equal strength. A total of 1,352,828 shares were sold down in 15 minutes between 2:41 and 2:56PM. But the the SP recovered spectacularly to 15.5c on the close with 1,240,235 shares bought. It was only shy of 112,593 share on close which is nothing after this 2.5M share churn and V-shape recover in an hour..

Technical Indicators:
Fast Stochastic - continues to trend upwards;
MACD - about to flip to the upside;
RSI - Stayed at 39 from Monday last week;
Slow Stochastic - flipped to the upside today!
Today's close at 15.5c which is well within the uptrend channel. So the uptrend is intact.

The big dip and recovery has resulted in a Dragonfly Doji today. It is typically interpreted as a bullish reversal candlestick chart pattern that mainly occurs at the bottom of downtrends. It proves that PYC is well supported by LT investors with great confidence. Let's hope the worst days are behind us and prudent buyers from the US would start to come through.

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.

Chart 1 - PYC Intraday 1 sec. chart

Chart 2 - PYC Daily Chart

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Volume has been decreasing throughout the week => selling is abating!

My 4 favorite technical indicators as shown on the chart:
Fast stochastic: Overbought, could flip to the downside (Hold)
MACD:Just flipped to the up side (Buy)
RSI: Still flat but just moved out of the short term downtrend (Hold)
Slow Stochastic:Just flipped to the downside (Sell)
Overall, it is pretty neutral and it had to be a Hold.

As there are still 11 trading sessions, any positive news would push the SP to anywhere between the last 2 peaks of 18c and 20.5c before the year ends. Honestly for the LT holders, there are no downside risk apart from a market wobblie and a shrinking base of profit takers. With the ASX index reaching a plateau at pre-Covid level, it needs further impetus to break above and right now I really couldn't think of any to the end of year. The sellers 2 weeks ago were most likely rotating their money into the banking, travel and oil stocks. But those stocks are now slowing and some pros are starting to take profit.

#andrewk65 raised a question in his Post #: 49489945 about the 1 share traded on close. I have done a couple of screenshots below to explain the situation:

At 4:09:59 the buy/sell queue looks like this. A Buyer with 5,000 shares at 16c, a Seller offering 4,999 shares at 14.5c, and the matched price was 15c. So this seller has effectively jumped the queue of 214,620 shares on offer. The reason NOT to sell 5,000 @ 14.5c was it would make the "matched price" = 14.5c.

When the market is closed, the 4,999 shares were transacted and the shortfall of 1 share had to come from the seller queue of 214,620 shares @ 15c.

There are always people who would want the closing price higher so they could sell more the next day. On the other hand, there are some who would like to push the closing price lower to create fear, so they could buy cheaper as the weaker hands would start to sell lower when market reopens. Hope this explanation helps to understand the psychology of traders.

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.