Justin,
The thing that stalled it yesterday was the large numbers of sellers who put there orders at half cent increments from 18c upwards, the dominance of large sell orders basically said to buyers, why not just put an order at 16.5c and let the large number of sellers drop their price, which they did.
If they had have sold into the buying from off screen the price could have well stayed up around the 18c mark but they didn't and the price stalled. This usually happens when there is a lot of day trading activity. This didn't occur the day before when the total sell volumes dropped very low. As the sellers who bought their shares on thursday saw the sell volumes building yesterday they listed their shares for sale and the impact increased. Some buyers see this and don't place their buy orders which further compounds the buy/sell ratio buyer dominance. It held up pretty well under the circumstances and ended with a vwap high for the last 12 months. I can only imagine what would have happened if the news was bad !
I can't say what will happen as the market activity is very unpredictable compared to what I think should have or will happen.
If sellers pull their sell orders and the volume drops to around 20m again, the price I'd expect it to move to around 18c again.
The news was very good and the reaction unusual but still not unexpected on review.
The next few weeks, no predictions because the market is too unpredictable but the sp is still lower than where I think it should be at this stage of the resource identification evolution. Whether the market agrees with me remains to be seen.
I'll be reviewing the data daily over the next week and if I see anything that is worth noting I'll post it.
FDL
flinders diamonds limited
