Guys - the number of posts today and sentiment indicates nervousness. Fundamentally. I will say two things. One - I anticipate that the 35mt will be upgraded, many hints to this. Potential of 100 mt has been mentioned a few times. Any upgrade logically should be mentioned before finance as this has less of a dilution effect.
Technically. I was surprised at the overshoot at .665 top. Pushes SP outside of the channel - so not surprisingly it is correcting. It is a good thing as now we have a .665 top to factor in the retracement. Notice that the buy/sell sides are considerably less in volume?
Here is my take on this. From .47 (strong technical price point) to .665, a fibbo 38.2 retracement lands us at .585 - coincidentally the low of today. The strong candle taking us to .62 is being retraced within its own range. The finish today on the spread was unluckily at .605, .61/.615 was strong up to a handful of shares at close.
So, my guess is that there is a bit of churn happening at overshoot - but will stabilise within the confines of the last run. In a strange way, this is a good thing as it prints and stabilises the price point of .60 ish.
Times like these, you need courage. This is not the time IMO to panic sell - as you will be doing it in the arms of the players who are scalping. We are above .60, we need to remember that. Don't add fuel to the fire and it will reverse very soon.
SDL Price at posting:
60.5¢ Sentiment: LT Buy Disclosure: Held
