Hi all, well in the month since my last charts 23/3 (...

Hi all, well in the month since my last charts 23/3 ( https://hotcopper.com.au/posts/37848871/single ) it appears there are finally some rays of sunshine peeking through the dark clouds of the past few months! There's a few things, but mother of mercy my charts even gave me a buy signal on Tuesday. Not a "back the truck up" type of signal, but good enough and relatively low risk enough for a pilot entry that hopefully leads to some more entries to build a decent position again.

Now I realise there is no reason for you to be interested in my entries etc, but a few may be interested in what positives the charts are now showing- as well of course as potential risks. Again this is all TA here- no FA! Below is a daily chart with comments that picks up from where my last chart left off, and also a weekly chart that shows a simpler picture. And apologies in advance for the long post, but hey you might as well have something to read on a quiet day!

In general, price is finding a lot of demand at around the 65c level, and if you go forensic and look at the 15 minute chart the volume spikes at this level stand out. And despite daily shorts remaining quite high at between 1M and 3M it appears to be becoming increasingly difficult for shorters to make money from MYX at the moment. For example, the breakdown of the rising channel back on the 21st and 22nd of Feb showed a 13.8% drop in 4 days, compared to the recent breakdown of the descending triangle on the 22/3 showed an 8.7% drop after 2 weeks- and that was after a pullback to the breakdown level which would have cleared out the stops of a few breakout traders going short. (Some would say this was a classic stop hunt manoeuvre of big sharks eating smaller sharks.).

And the relentless daily short selling is having less and less downward impact on price- just compare the volumes traded over the last couple of weeks compared to Jan/Feb and the corresponding price movements and daily range of the bars. This really stands out during the first week of April, where sellers show admirable commitment with daily shorts ramping up and volume increasing but price only grinds down, showing less and less "result for effort" until demand eventually swamps supply. This might help explain why total NETT shorts have slipped back down to near record lows again during this time.

So who is buying at the moment and causing the chart to flatten out and round off? Is it short traders covering at around the 65c level, or are there big players building a position, who might also be contributing to the daily short selling at times to keep the price in a favourable area? Well the chart is certainly starting to show accumulation characteristics but most likely it's both. It's probably too early to call accumulation yet or at least take any comfort from it, as even if it is, price is still vulnerable to big players dumping their positions before they are truly "set" and ready to support a markup phase.

Anyway, what the chart is showing us is that there is now serious COMPETITION for stock appearing around the 65c mark (and potentially moving higher) and this is positive. And a few of the technical chart indicators are looking good- my momentum indicators show green (strong) for 5 of the last 7 days, CCI's are all up over 100 and the short term Immediate and Minor trends are up (with short term Major trend still red). The beauty of the charts is that they show the combined demand vs supply dynamic and it doesn't really matter whether it's shorters, accumulators, traders, algos or manipulators- the charts can give a great insight into the background, sentiment and potential future movements- so we shall see. What happens next will obviously reveal itself with time, but I expect more selling pressure to re-test below 70c- why would it stop now? But how far it pulls back will determine whether my "pilot" entry turns in to a longer term hold, or kicks me out again for a small loss.

Good luck everyone.