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We could be seeing the final move in the formation of a reverse head and shoulders pattern. Volume has been reducing as price weakened from a high of 96c on 4 April. The counter closed at 93.5c today.
What do I like?
1. Low volume pull back.
2. ADX suggests a lack of trend. Looking at the Stochatics, it has entered oversold territory.
3. Potential reverse head and shoulders pattern. Watch out for price possibly testing 93c or even 92.5c for support.
4. Results and income distribution will be announced on 26 April. Expecting that to be a catalyst to send price higher.
So, if the pattern is valid, how high could the price go? Well, the low of the pattern was seen on 15 March and that's at 91c. The neckline of the pattern is at 96c. Projecting this difference forward would give us a target of $1.01. Not too bad, if I do say so myself. I am accumulating on weakness.
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2 comments:
Hi AK,
What price are you accumulating? 0.935 or wait for 0.91?
Hi ortho,
I got in at 91.5c initially. I also bought more at 92.5c and 93c.
If price were to retest 93c, I would buy more. :)
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