If you cast your mind back to 14th April - 20th April then you will recall that TRH traded about 21mn shares over these 4 sessions with upto half that total traded between 80c and the intra-day high of 95.5c.
The price then fell back to around 60c and stayed below 70c for almost a month.
I suspoect that some of those holders are using the recent strength in the SP to sell at a small loss / breakeven or a small profit. They may regard this as a lucky escape after buying on momentum in April only to see a 30% fall.
The appearance of these sellers means that buyers could just sit in bid depth for the last couple of sessions and get filled without chasing the offer.
I do not believe there are a huge amount of these sellers and they may be gone already.
It is one of the points when holding a stock without many shares in issue it doesn't take much buying to send it up and it equally doesn't take much selling to keep send it back down again.
Once any left over sellers from April's surge are gone then we will be back to the previous upward trajectory imo.
If my little theory is correct then the current SP should be seen as a buying opportunity while there are still some small volume sellers around in the 80s.
Personally I am not buying anymore as I have no more spare cash left and I already have about 80% of my speccy portfolio in TRH, for which I have so far been awarded one bag after loading up during March.
My feeling is that we will see TRH head higher tomorrow and into next week and that once the next ANN appears we will have a further gap up followed by some serious volatility as the lack of shares in issue causes some wild swings.
At that point I will have to consider changing my TRH status from TRH holder to TRH trader but certainly not yet.
EB
TRH Price at posting:
83.0¢ Sentiment: ST Buy Disclosure: Held
