The week has been dominated with the pros keeping the SP artificially low.
Thu 28/01/2021, at closing auction, 2 funny buyers appeared, then 10 sec. before closing, a seller for 1 share popped up.
Thu 28/01/2021, just before market closes, both funny buyers disappeared, leaving 1 share being sold at 13.5c. All 3 parties could be related.
As I have mentioned before, when you see the pros trying to push the SP down, they are trying to scare the weaker hands into selling so they could scoop up at heavy discount. When SP recovers to the CR price of 17c, 13.5c buy price would give them a handsome profit of 25.9%.
Prudent investors should NOT fall for their traps.Market volatility is up- The destabilizing power of millions users acting in unison should be not be underestimated. Coordinated by a chat group called Reddit, they used the no-fee app by Robinhood to launch a "keep buying" attack on shares like GameShop which shot up from US$4 (6 mths ago) to US$347, a whooping 86x.
- This is an event envisaged for a while but the authorities do not seem to have a legal way to stop it. The action of coordinated trading the share market is no wrong-doing. But collectively, this group is now able to drive any share up at will. Regardless of its fundamentals.
- But this is effectively a ponzi scheme. The last lot of people who got in before it crashes down would be wiped out.
- If they start to tackle the commodity market, the collateral damage to the economy would be felt by all ordinary people. Imagine what could happen if they buy up crude oil to US$200 a barrel.
- Before the authorities could address this issue, be prepared for major market volatilities and it could even triggers a market correction. Is this the black swan?
My 4 favorite TA indicators:- Fast stochastic flipped to the upside on Fri (Buy).
- MACD trending downwards and below 0 (Strong SELL).
- RSI below 50 but just started to point upwards on Fri (Weak BUY). If it breaks above 50, it would become a strong buy.
- Slow Stochastic continued to trend downwards (SELL).
- Overall, the TAs are pointing to a Sell, but looking at the way the closing price being pushed down, it should be a HOLD.
Obviously based on the 28 indicators and oscillators I kept, it is a strong sell. But this is where human needs to step in as someone is trying to trick the robots and the weaker hands into heavy selling.
13.5c is right on 23.6% Fibonacci Level, besides 14c is a strong support level. So the SP could bounce from here. 16c is the 50% Fibo level and it would need a bit of work to break above. Once broken, the next levels are 17c and 18.5c.
Hope the possibility of PYC getting into the ASX300 Listing in March 2021 would gather some steam from the LT buyers as it would force instos and funds to start buying.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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