Slow positive build29 Dec 2020 15:02
Hope everyone had a good Xmas - unsurprising we saw some of the worms come out today after a good rise. People will naturally want to scalp short after a large move. If you really can't handle a 10-20% dip from here (which is very natural and healthy) maybe selling is best, but you will miss the next leg up, get a poor entry, then most likely chew into your profits even more etc.
Anyway, abit of technical analysis as we move up:
- We're now above every moving average on all timeframes. Most recently we've moved across the 200ema on the 2week timeframes around 10.5p. At the same time I also have a support zone at 10.8p to 9.9p, as well as that moving average. If we're going to have a healthy re-trace I'd expect it to around that level.
- We've now broken pretty clean above that key area around the 10p area (discussed more below), last bullrun highs at 17p are well within reach and would be the next logical short-te
rm target area.
- The yearly candles (yes, a 12month candle chart) closed at the last bullrun around 14.5p, creating a resistance area. We tested that today and it is healthy to cool off - it will most likely need to accumulate and build more pressure before breaking. This is actually why a little pullback may be healthy to attract new buyers waiting for an entry to push through the big level and kick off the next large move up. At the same time, MM's being caught out and people being unable to buy also shows the share is illiquid and this may also cause a big spike through this area to attract sellers, which is the job of the MM's.
Obviously, we're quickly approaching the close of the year, so a push and close this week through that area would be mega bullish. Personally, I'd much rather prefer seeing a slow build-up rather than a burst of volume followed by a dump - so my preference would be some sideways movement this week and perhaps a modest break up above 15p's to close the year out.
Fundamentally, the writing is quite literally on the wall around the companies prospects in 2021 - we know where the short-term prospects of the company are heading and that makes for confidence and certainty. What I think we're seeing here is a steady accumulation from institutional and retail investors alike.
I'm not going to put a price target alongside this post but the past 5years+ of work is about to be realised -- AK & the BOD granted their share options as they know this - and i'm sure AK will want a much higher valuation to make his relatively small holding worthy of a lifetimes worth of work. Don't get caught up in short term moves and focus on the bigger picture.
GLA
Sign In
Follow the stocks
