oversold, page-18

The movement in RMD is reminiscent of IBRT last February.  On 8th Feb 2018 it fell 32% ($US88.04 to $US59.80) on account of failure to meet the analysts expectations.  IBRT rebounded fairly quickly and the fall was over done.

RMD has fallen 19.39% ($US117.30 to $US94.56) so a fair bit less than IBRT but basically for similar reasons.

My thinking is that some of these falls are almost self-fulfilling in that the trigger, a failure to meet analyst expectations leads to several sells (algorithms, etc.) which, in turn, gets magnified by further sells.  The volume seems to reflect this kind of behaviour.  Longer term, however, the original trajectory returns as the signal is false.  There is no fundamental change in the company's business and no reason to rerate future prospects.

If my assumptions are broadly correct then there is strong possibility of a rapid recovery to $AU16.50 from $AU14.47 for the CDIs and maybe after further falls to reflect the relatively greater NYSE price drop to US94.56.