Being a trader by the nature I expected some resistance in the...

Being a trader by the nature I expected some resistance in the Australian market at ~10c and in the LSE at ~5.95c (1 year high) and initially I was thinking to sell the purchased shares at the resistance and then to watch the stock behavior and in the case of a bullish move to reenter the stock again.

As the share price was moving up with a consistently increasing volumes as well as after some nice consolidations at minor hurdles I have change my plans (I can be wrong). So here are some technical observations for the trading during the recent several days:

- as expected a 5.95p price level should be a resistance at LSE, but with the trading patterns yesterday and today it looks like it will be overcome in the coming days

- for the past 4 days the trading volumes are consistently increasing on the both markets what is a good sign as more and more new holders are entering the stock

- without knowledge on how many shares are held by the ASX and LSE holders, it is clear that the major trading volumes are from LSE as well as the price is basically driven by the LSE trading. For example for the past several days over 80mln shares have been traded on LSE and only just above 25mln on ASX

- also it looks like there is a gap between the share price on LSE and ASX, as the OEX.AX is lagging by at least 5-10%

- so far today's trading at LSE has shown a relatively strong buying pressure and very good trading volumes so far already almost ~20mln

- based on this the 5.95p resistance level should be overcome very soon, the same can be applied for the OEX.AX of breaking the 10-10.5c resistance level

- any closing today of OEX.L not below 5.7-5.8c should have a bullish impact on the trading in the coming next several days otherwise more consolidation will be required

irynka