Instos have been protecting 22.5-23 and selling almost everything above this.
Two big days on the DOW has probably saved them some coin and reset things with another low volume lift yesterday.
The issue is volume. The complete lack of big smart money entering is of major concern. In the past two days we have seen algo's loose nearly 1.5million shares, whilst on the buy side we are only seeing sub $50k punters. It seems quite obvious that with the possibility of a VS or worse any day, that despite the trading opportunity, the big guns are staying well away.
So if there is to be a pump, those with deep pockets will need to break through the exiting insto's, who seem set to let it all go at the right price.
A close of 23.5 cents and above is needed to break out of the descending triangle follow through. A close of below 23 will set up the prospect of capitulation. Next level of short term resistance is 26cents.
In a nut shell SGH is set up to provide some serious trading entertainment, but not too many smart traders appear willing to pay the price of admission for fear of not being able to get out if the exits become blocked.
SGH Price at posting:
23.0¢ Sentiment: Sell Disclosure: Not Held
