PYC (ASX) PYC Chart looks the goods

Originally posted by Medicine Man: ↑

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.

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Sideways consolidation continues... But the Technical Analysis Summary (chart 2) has started to show sign of life. One more oscillator has flipped from neutral to buy.

My 4 favorite technical indicators as shown on the chart 1:
Fast stochastic: continued to go higher in the overbought zone with 2 blue dots which are positive signs. But it is still overbought, and it could flip to the downside (Hold)
MACD: A triple flip (up/down/up) has just appeared. From previous experience, it is a very bullish sign (Strong Buy)
RSI: Still flat but just moved out of the short term downtrend (Weak Buy)
Slow Stochastic: Flat but stayed in the downside (Hold)
Overall, it is a weak Buy.

The PR machine in PYC has been working overtime trying to sure up investors confidence in the hope to boost the flagging SP. The last good news was on Mon 12.10.2020 - 3rd New Drug VP-002For ADOA Childhood Blindness US$1b p.a. Nearly 2 months have lapsed without any positive news, then suddenly 3 news releases in 7 days.
Thur 10.12.2020 - Appointment of Chief Executive Officer in the United States
Mon 14.12.2020 - Letter to Shareholders from the US CEO
Wed 16.12.2020 - Visual Evidence of Lead Drugs Efficacy

Unfortunately these good news were met with luke warm responses and the SP has barely moved from 15c. Basically investors felt the good news were not good enough! In fact I am not sure if they have any rabbit left in the hat to draw out before the year ends. It was hoped that some good news could push the SP back above the top half of the uptrend channel in the range of 18-20.5c range by 31.12.2020 which now seems very remote. It would be nice if it could get back to the pivot line of 16c at least so we would have a "neutral" stance at the beginning of 2021.

Next year would be big for PYC. With large animal toxicity study being successful, it would pave the way for FDA to approval of both orphan drug designation (ODD) and rare paediatric disease designation (RPDD). All we need is to hang tight and stick to a long term strategy. Commercialisation of VP-001 has been slated for 2025. I am quietly confident that PYC could cross the line early with the help of those 2 designations being approved.

Unless there are miracles in the next 3.5 trading days, the next time I write would be after Christmas. In the meantime, I wish everyone a Merry Christmas and a Healthy Wealthy and Safe 2021.

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.