The volume pattern shows supply was drying up at ~16c before the...

  1. 676 Posts.
    The volume pattern shows supply was drying up at ~16c before the move up on Friday which suggests support at that level (sellers aren't willing to take less than 16c).

    Friday's green candle spans a wide trading range and closed in the upper end which is normally a positive for a reversal. I would have liked to see a bit more volume but OK for the last trading day of the year.

    It would be bullish to see the SP now consolidate between 19-20c. Watch for an ascending triangle to form up against 20c. If that happens, there is scope for another leg up to previous R at ~23c.

    However, if the SP turns down again I see the next level of support at 14c and if that is tested there could also be a spring down from there into the gap you mentioned.

    If you like the fundamentals but expect some more gyrations in price, you could consider placing a stink bid in the queue near the top of the gap say ~12c.

    This is just my opinion and a genuine attempt to interpret the chart, but take it with a grain of salt and make your own decisions.
    Last edited by ajm65: 26/12/17
 
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