Been a holder for a while ( smallish holding) but bought a significant chunk 2 weeks ago. Also took some profits last few days. Profits a profit. Operate a short and long term portfolio.
My take on the chart
From roughly May 2017 to mid way through Jan 2019, SP formed a long basing pattern, between roughly 1.8 and 4.7/8 cents.
Basically, this company was toast and had fallen so far, it wasn't going to fall any further, unless it went into liquidation.
Spike low to lowest low was on April 30, 2019 and two weeks later on 18 May, SP had a massive spike. It looks as though all the restructure issues were occurring between March and June based on filed notices, so no doubt to do with that but don't feel the need to delve further.
Now, my understanding is that having had a horrendous decline over many months, there is very little chance that recovering stocks go straight up. So, backtracking slightly, the earlier low on Nov 2017 at around 2.1c was followed by a failed rally and retrace to the spike low mentioned above, at a slightly lower level. Looks like a classic Wyckoff spike low, on low volume.
Price has then had an ok rally to highs around 4.7 ( a higher high) which was actually turned out to be a double top on 3rd Sept and 18 Sept 2018. This was probably seen by many long term dejected shareholders as a great time to get out of dodge, with what they would have considered by now, "a dog". I know this because I have previously owned packs of those animals.
So price promptly falls back to 2.8 ( a higher low) which looks to me like another spike low. The candle on 9 October has a very long lower tail and closes near highs(3.6) around 3.4. Not a bad effort and a bullish indication.
This second spike low was tested again on 29 November 2018, and had several other tests around this level over following days but never broke it. It looks like a double/triple/multiple bottom in hindsight. (we are all experts in hindsight)
But then at the start of this month, on 9th/10th of Jan, relative volume picked up, a sign for keen eyed chartists.
The short term downtrend line was broken on relatively higher volume on 10 Jan 2019 and price has carried on north until Fridays highs of 6c. Interestingly, 31 Jan backtested the previous resistance at 4.8 ( now support) and was a red candle. Probably some thought the announcement should have been out about the additional investment but wasn't, so panicked. Announcement out the next day and off it went again.
I see the high touched on Friday as a resistance point. However there is a stronger band of resistance from 6c to 6.8c, which comes into play when 6c broken. I suspect we might bounce around at 5 to 6c for a few days, which would be a good thing for a future sustainable SP appreciation, and until Directors are confirmed appointed to inhealth, and funds all transferred.
Of interest to Gap watchers, 8.7 to 9.2 has a gap which coincides with a further potential band of resistance.
The basing pattern was 1.8 to 4.8 = 3 cents. 3 cents on the top of the band at 4.8 is 7.8c. There is not a lot of resistance at 7.8, so my thoughts are that any good news announcement will take the SP from wherever it is at that time to around the 9c to 9.5c mark and fill that gap. 10.8 would be top of a further band expansion, coincides with pip traders bowing out due to 0.5c increments from 10c, and longer term investors taking an interest and getting in.
Only very good news, or sustained business expansion, is going to take this through 10c to 11c. However, it appears from limited review of text book charts with long basing patterns, that they can have a propensity to go hard, if they recover and expand out of the base.
Sorry the charts not that clear, esp volumes, tried several times but I'm not a tech head. Anyone half serious about this will have access to their own charts and can double check my ramblings. They probably worked it out weeks ago and got in under 4c !
So in short, I think there is a probability based on my ( probably inaccurate) technical analysis, for SP to rise to around 10c from here over coming weeks. But what do I know, I'm just another punter who has some ability to read books on technical analysis.
(20min delay)
