Thanks sharks. Appreciate it. Very balanced post. The weekly...

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DollarDan

1,481 Posts.

01/08/16

18:43

Post #: 18419496
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Originally posted by sharks37 ↑

DD, no probs.

I will start with the caveat that the volume and price increase leading up to today could be artificial, i.e. engineered to maximise today's closing SP to establish the best possible conversion price for the CN. Having said that, charts are full of features that are linked to artificial events rather than free market events (smart money accumulation & distribution, traders P&D, macro market events like Brexit, etc). So normally take the chart as it comes, and the real proof of the pudding is always the follow-through confirmation anyway, which tells you what the real story is.

So, I have marked up a weekly chart below. There's a lot to like about the chart atm (compared to the last few months), including:

1. The increasing SP obviously, but on increasing volume
2. The bullish break on the RSI out of the overold region (it has been oversold consistently for 3-4 months)
3. The breakout of both the ST downtrend and the 2 month trading range.

All good so far, however, the critical part is yet to come. What happens now that the CN conversion price has been set. Will we see a continuation of price (very bullish) or a pullback. How far and how deep will that pullback be? If on strong volume we will know this is a P&D. If on low volume AND that 18c holds AND we see it bounce from there, then we are in business...but not until then IMO. And in any case then there is that LT downtrend still overhead, but that's for another time...

View attachment 214129

Hope the above is useful.

Cheers, Sharks

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Thanks sharks. Appreciate it.

Very balanced post. The weekly chart is what I'm interested in at the moment also.

Over 10m shares traded at a vwap of around 20c today. Impressive.
But I think the China deal has some weight to it.

Will be interesting to see in the weeks to come.

I think we can expect some positive catalysts going forward from here.

CM8 Price at posting: 21.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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Thanks sharks. Appreciate it. Very balanced post. The weekly...

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