We can never know for sure what's behind large sales like this, other than it was a large negotiated single block transaction between 2 parties.
The rest is all speculation.
I don't know how SM record transactions but I do know for every buyer there is a seller and vice versa. The theory that doudou proposed on the other thread is interesting and has some plausibility to it - I hope that's not the explanation, because we are then likely to see a resumption of the down-trend. But equally it could be a buyer interested in taking on that block of converted warrants - that also has plausibility and naturally I think most of us would hope that is what happened.
But for me all that is by the by, because I can't know what the real situation is. What I am looking at and why I have taken a punt is that the daily chart now has a nice bullish engulfing candle. There is normally follow-through from this type of candle and that is what I am banking on, although I note on LYC's daily chart it has a tendency after strong high volume candles like this to consolidate within the body of the candle before moving higher. I will be looking for a repeat of that pattern, and if price breaks a couple of points below the low of today's candle I will be out.
So whatever the situation behind the scenes is, which I don't know, I will let the chart decide the outcome for me either way.
Cheers, Sharks.
LYC Price at posting:
10.0¢ Sentiment: None Disclosure: Held
