Chart analysis by grasschoppa.
IMO WPL SP started behaving very erratically at the first hammer Thur July 2021. Strong buy signals came and went as four bullish engulfing candles were uninfluential, 26Jul, 2nd ,4th and 13th of August.
Armed with these two pieces of information only, I was keen on adding to my WPL stocks which would allow an average down.
Markets are controlled by fear and greed, two completely normal emotions of us mortal homosapiens.
These two contributors to the very confusing share price of WPL ruled on the uncertainty and speculation of the WPL and BHPP tie up.
Fear and price capitulation started with the big red candle in the middle of the above chart. This is also the point I executed a BUY 21.337 for me, this was classic catch a falling knife
.
However what was also happening is share price manipulation by Brokers, Trading Houses, and Market Makers.
(manipulation is not quite the right word as everything I'm trying to describe is completely legal) This was indicated to me by the height of the volume bars 16th August until 22 September.
Tools of trade are borrow and sell, as shares are already in managed portfolios, there also must be carnage on one of the two party's in trade execution.
Before a short position is notified a reversal can happen ie four days in any direction so we see an up day or short cover.
If the buy price is to high the market releases more shares to drive SP down further, the volume here with WPL was IMO risky because of capital guarantee's and rouge traders selling more, hoping to be able to return shares a latter date that they may not be able to financially achieve at the current timeframes.
I keep all this in mind and try and apply the common theories and patterns, which seem to work in equal and opposite reaction. The tricky part is figuring out when the balance occurs as its basically a big game of poker.
Simple things to keep in mind are the bigger the rise the bigger the fall i.e lately BHP RIO FMG
Anyway I,ll try and stay on track for a prediction of when WPL will reach 25 dollars. I can definitely tell you it is my opinion that it will get to 25
What I'm trying to see is how the price will react through the Fibonacci trading ranges as critical markers.
The big volume bar on Friday 17th looks as if the trader/traders have exhausted all options to hold down SP, so that was the last desperate effort to control direction.( 20th Sept red candle).
So have a look at todays low volume bar.
We should jump tomorrow (gap up) and get to our next stop or balance point within 3 more trading days if not tomorrow..
Lets see the CUP form and I'll go from there.
Ill be busy tomorrow so I will be oblivious to the action pre market and trading hours , but will catch up aftermarket for the weeks wrap on WPL.
(20min delay)