Broke the lower ascending line and the Wave C level by a mile. But respected the October low of $3.40 so far.
My opinion is that the Corona virus is all just an excuse for global markets to correct from a sustained rise up its been on since the December 2018 lows. If it wasn't the Corona virus, the markets would have found something else to panic and cause the correction.
You can see very clear negative divergence of RSI on DOW Jones. Sticking out like dogbs. So, this was coming.
The good news is, the RSI on the DOW , XAO and TLS have touched my oversold line and for me that is a clear buy signal.
Markets don't give away money easily. There is blood on the streets.
Although already sitting on a loss, I feel the right thing to do was to buy. I picked up 50,000 right at peak fear on open today at $3.44.
I don' know if there will be a Wave 5 now that bottom of Wave C was breached. But I know this was a good price and there should be some bounce from here. The bounce can even be all the way back up to $3.88 as if nothing happened.
One such catalyst for a bounce from here (not including any TLS related announcements) will be a rate cut next Tuesday when the RBA meets. That will make the TLS dividend yield even more attractive. Hence buying TLS today attractive.
The RBA was aware and mindful of the fires and Corona at this months meeting but wanted to hold off to give more time for the effects of both the fires and Corona to come through and be more clear. Well, now they are seeing it, so the probability for a rate cut next Tuesday is looking higher.
Other catalysts might be a break-up of TLS a bit like BHP and South32 where existing shareholders are given shares in both companies. Penn has to do something to make TLS go up before he leaves. Or, 5G starts gaining traction more than imagined.
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