What a great week!
2nd projected target of 16.5 - 17c achieved 8 days early. The SP is going from strength to strength.
That's the good news. But from a TA standpoint, reaching an expected short term peak would (nearly) always need a breather. Virtually all the robots are trained by traders reading the same book! Therefore
some profit taking would occur and consolidation is the expected course in the absence of further impetus.
The Bear Case:Fibonacci retracement levels are as follows: 78.6% @ 16c to let some pros to take quick profits. Support would come from those investors who have confidence in the FDA giving approval on orphan drug designation (ODD) and rare paediatric disease designation (RPDD). Some traders could take their chances to push the SP down to 61.8% @ 15c so they could buy more.
If it ever gets to 50.0% @ 14.5c, there would be strong buying interest from instos and funds to ensure PYC could get into the ASX300 Index. However we still need to be mindful of the overall market sentiment.
The Bull Case:If FDA approves one or both designations, SP would certainly has reason to go up. The next Fibonacci level is 123% @ 18.5c then 150% @ 20c. PYC's US office would be fully established by now.
The FDA news or PYC's breakthrough technologies might catch some US investors/funds interest, then buying volume could have a quantum leap by an order of magnitude.
Since the SP took off on 12.06.2020 when S&P made the All Ords announcement, I have been watching the volume analysis closely. Look at the buy/sell volume bars on the right of the chart, blue represents buy volume and orange the sell volume; the
buy/sell volume ratio is nearly 3:1. This is an indication of investors' confidence and their continual accumulation of the stock.
These are my 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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