This is the week

A good week on no news but maybe someone is expecting more soon or the market has just assimilated the last update.
Whatever the reason for this rise the chart is now looking a lot more bullish than the last few weeks.
I would normally associate the candle (shooting start) as bearish (particularly if it was after a few days of rising prices) It would also be more bearish I think if it formed at or above Thursdays high but as it is the same set up as back on 4 Sept as has been previously noted then we may get a similar reaction this week.

Thursday saw the sp break out of the daily bull flag pattern & cross over into the top part of the down trending channel, both bullish moves with rising volume.
Over the previous 14 days, 10 of those days were trading below the resistance (now support) of $0.185.
We now have 3 higher lows & a second higher high and have seen a swing from the bottom of the channel to the top over that 14 day period.

The daily overbought / oversold indicator has turned down from a slightly overbought level but can & does stay above the level for some time. The turn down atm may be indicating a small pull back and consolidation & is not of concern yet.
The weekly OB/OS indicator is still well below the overbought levels & is still rising.

The sp is currently in a busy area (daily chart) where converging trend & support levels meet.
After a flag breakout it is not unusual to pull back a bit & retest the breakout point.
It is also normal after a volume spike & large range day to see a few down days & consolidating.
The broken flag pattern had a minimum target expectation of $0.21 215 as the box center, that target was reached Friday & since pulled back to the base of a new box (B).

The high on Friday also managed to break the top of the channel (The red trend line I previously mentioned) before pulling back.
If the new box holds this week then I would be expecting to see the sp testing that center point (0.205 – 0.210 again and potentially the top of the box at $0.225. If that happens we will finally clear the down trend channel we have been in for 44 days.
I don’t see too much downside but a dip to $0.185 would not be unexpected or concerning but I see a few negative signs
Looking at the inverted chart I feel that short term (1-2 days) it may consolidate around the current price (up or down a cent either way) before resuming the uptrend.
I am a bit disappointed that we have not yet seen a retest of the Sept high as I felt that the update had everything in it that we were looking for but there is no doubt that PSY is well on the way to stardom.
Maybe this is the week.