PYC (ASX) PYC Chart looks the goods

Originally posted by Medicine Man: ↑

Hello @@86 thanks for your posting, I seldom use the CommSec platform, it would be great if you could show us the steps to get to the narratives about the "different sentiment between the summary on the comsec site to that which you have posted".

In your second posting:
"From Comsec
Although PYC's 200-day moving average is trending higher, there is significant evidence that the bullish trend is near an end. Recent price action has shown a lack of strength as the 5-day moving average has fallen below the 50-day moving average and the 20-day moving average is trending lower. Long-term investors should proceed with caution."

I would like to run through the technical indicators mentioned above and share the discussion with HC members interested in TA.

Here are my observations and comments.
"200-day moving average is trending higher, there is significant evidence that the bullish trend is near an end." The 200MA (orange line) has been trending up and it has NO sign of flattening, indicating the bullish trend is NOT near an end. In fact the gradient has gone steeper since Oct-2020. So the longer term uptrend is getting stronger.
"Recent price action has shown a lack of strength as the 5-day moving average has fallen below the 50-day moving average" The 5MA (brown line) did fell below 50MA (light blue line) at end of Nov-2020, but it has bottomed and trending up towards the 50MA. SP for the last 3 days were artificially pushed down by 0.5c or more on close. Otherwise the 5MA would have brokenabove the 50MA.
"and the 20-day moving average is trending lower." Look carefully and you would see the 20MA (black line) has started trending upwards.
"Long-term investors should proceed with caution." Based on the commentaries above, draw your own conclusion.

The next move should be UP
In TA, we look for similar patterns and hope the outcome would be similar to the past.
In Mar-2020, the 5MA, 20MA, 50MA, and 200MA were all aligned in the same order, SP had a bottoming and the 5MA cut above 20MA then touched 50MA. Just looking at the SP candles and you could see a bottoming has formed. Look what had happened after the bottom. Had you spotted the turnaround and back your truck in at 6c, wouldn't you be a very happy person? Disclaimer: "Past performance doesn't guarantee future results"
The support line @ 14c hasbeen successfully retested 6times since the flash crash.It's a solid sign of bottoming.
For as long as the SP stays in the upper half of the Bollinger Band, it has a better than 50% chance of going up. That's the purpose of the mid line in a Bollinger Band. Here, the 20MA coincide with the mid line.
The closing price for the last 3 days have been artificially pushed down between 2.6 - 4.3% from the pre-close daily VWAP (Volume Weighted Average Price). As I have mentioned in my Post #:49547949. "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. " So this is a clear sign of someone wanting to buy more!

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.

Expand

What an uneventful week with SP trading flat. But this week's volume of 5.747M is more than double from last week's 2.839M. Buying interest is certainly returning.

I have noticed a few interesting sell orders going through the system towards the end of day yesterday Thur 21.01.2021:

These are tell-tale signs of professionals at work as retail investors would not sell 1 share for 15c and pay $20-30 brokerage. Purposely driving SP down from 15.5c to 15c by continually selling a few shares at a time is a blazen attack on the SP. You would have seen this being done to larger cap stocks like SLR. It appears that the professionals are now interested in "controlling" PYC's SP. No wonders the SP was artificially pushed down for 3 days in a row by sell orders submitted in the dying seconds before the market closes at 4:10:00 PM.

LT investors should take note of the near term impetus on the horizon:
Large animal model toxicity readouts in Q1/Q2 2021.
PYC is very likely to be included into the ASX300 Index in Mar-2021, SP would start to move upwards, and some instos and funds might scoop them up by the tentative index closing date of 11.02.2021.

On the TA front, both the upper and lower Bollinger Bands are starting to point upwards. The last 10 candles are also closing above the midline of the Bollinger Band. These indicate the momentum would stay on the positive side. As mentioned before, investors are still waiting for good news to give them a reason to buy. Next Friday 29.01.2021 is a key date when the Head & Shoulder reversal zone would end. Let's hope PYC would rise above this zone on the brighter side.

My 4 favorite TA indicators:
Fast stochastic flipped tothe upside today. (Buy).
MACD flipped to the upside but flatat 0 (Hold). Watch for uptrendto be confirmed when > 0.
RSI break back above 50and at 55 is a fresh BUY. (Buy).
Slow Stochastic flipped tothe downside with shallow gradient (weak Sell)
Overall, it is a Hold to a Buy.
Please refer to Chart #2 for more signals.

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.