Expected MP Pre-Auction Open today at 9.5 (this can and almost...

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wombat53

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28/09/16

09:47

Post #: 19467527
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Originally posted by wombat53 ↑

@cafa - I think we always have to start with the Weekly chart (and not just for the big picture, but yes, that too). For example...a rally suddenly stops, for no apparent reason. You flip the Weekly..look left and see a very obvious reason - it was an old Resistance, perhaps 2,3 years old. I've seen this lately with stocks as diverse as PLS, RSG, various golds, you name it.
This is what they mean by the slogan "Markets have Memory".
These old holders are still there, and will sell at the first chance after years of miserable drawdown, to finally "break even" (aka "human nature"). This is also called Overhead Supply, or Supply Overhang, and the stock can't go higher (and then higher still ) until those holders are progressively flushed out.
I'll look more closely at the next immediate Resistance level - was a bit rushed before.
The pin bar of 16 Aug (intra-day hi of 9.4c, couldn't hold it, and sold off...) sticks out like the proverbial sore thumb.
Looking left (still on the DAILY), the spike of 10 June up to 10.5, couldn't hold it, sold off and and closed where? 9.5c..not a co-incidence. So we need a decisive close above 9.5..ideally on a Weekly (you can see what happens on a day...just noise).
MGV - DAILY

GLTAH
wombat53

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Expected MP Pre-Auction Open today at 9.5 (this can and almost certainly will change).
As noted above this is immediate S/T Resistance. MGV needs to hold and close above this, ideally on a Weekly basis (Friday). If it opens at this level today, let's see if the momentum can be maintained for the remainder of the day (or it gives it all back). Current MP as of 9:47 AEST

MGV Price at posting: 9.0¢ Sentiment: Hold Disclosure: Held
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Expected MP Pre-Auction Open today at 9.5 (this can and almost...

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