Consolidation before the next leg?
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From a weekly perspective, a small drop from 22.5 to 21. 5. Volumes are decreasing and decreasing.
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So what is happening? Looks to me like consolidation. Stock had a mercurial play last few months. Rose from sub 10s to near 60, back to 16, now playing early 20s. I feel there is no strong, ground breaking news in the near future. Punters understand that. So most punters are out from here playing others where much more is happening, hoping to come back in future when action will start. So it's consolidating, testing some levels
This week it tested 20, it has held for now. It would be good to hold 20,otherwise 16 may come into play. It may mostly play on technicals in near future. There is still committed holders, and small shares, so it could hold here. But if this play drags on, those holders may lose interest, and then it could drop. But it won't also take much to push it higher.
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Personally I exited 10% I was left with. 2 weeks back I wrote I exited 50% on the bump to 27. Last week I wrote, I exited another 40% to another bump to 27. Rest 10% I got out this week at 23.5. I had started buying the stock from 25c. Within couple of days I was down. And it kept going down. To 16. Usually I don't average down much, but as I was writing, every week I was buying and bringing down my average. I brought it close to 20 as I wrote earlier. So when the 27 came, I was already spooked with holding losses for long, hence decided to exit. I was very lucky to have made 25%, rather than lose 25%. I know many sitting here to multi bags, 25% may look trivial. But that's me. I am more of trading pattern rather than fundamentals, so my play look different. For me it was not about 25%. It was more about where it can go in near future. So my sell may not look right to many. But at the end of the day, we have to do what we are comfortable with. And I played accordingly.
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So what may happen next week? 20 needs to hold otherwise we could see a decent drop. Play around this has been fairly positive, so let's hope it continues that way. Enjoy your weekend and all the best.
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