What changed last week? In a word? Nothing Most importantly...

What changed last week?
In a word? Nothing

Most importantly there was no bad news and all the positive expectations are still intact
We had an announcement that didn’t say anything that we didn’t already know but was very reassuring & quite informative if one cared to listen. I think it said pretty much everything we wanted to hear except no deals have yet been reached but they are coming. At least that is what I was hearing.

So were to now.
The downtrend / sideways accumulation / manipulation continued from the previous week.
The sp has now been 9 days trading in the bottom half of the projected range box and the gap closed.
The immediate support for now is $0.115 with the sp closing at that level.
The projected downside target is still at $0.10 as per the range of box 6.
The gap during the week was filled by hitting a new 9 month low.
The down trend is still firmly intact but may be building up to a reversal.

The last three candles look to be positive to me having stayed inside the big one of the 7th July.
The retrace after the big bounce after closing the gap I would take as normal and to be expected.
I cant make up my mind if the bounce off the gap would have happened any way or if it only resulted from the announcement. I think maybe both events were responsible.
What we need to see this coming week is a retest of the $0.135 – 14 level to confirm the bottom and a trend change.

The weekly is I believe still showing a divergence while the daily is in sync & the momentum indicator rising.
If the sp fails again at $0.115 then I believe that $0.10 will be the next support.

We don’t need to worry about the gap at $0.046 - $0.064 being filled at this stage as at the current fall rate that would take another couple of month’s and surely we will have something stitched up by then.
Having said that there is no reason at all that the sp won’t get pushed down there if that is what the big boys want.

I am pretty happy with the way the trading pattern predictability using the box’s has performed the last 7 months but I will be a lot happier when the trend reversal happens so I can see how good it works going up.

Once a deal is signed or other positive news such as the successful manufacturing of the chips currently being made happens then I reckon we will be in for a great ride.