It means testing the upper limits ...trying to find out where maximum it can go without any positive news !!
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Shorters now just have to hope that the results miss guidance. I'm personally surprised with the uptick in the share price, which I can only put down to the signing of the upgraded trade agreement. This agreement was basically done and dusted and announced last November, so I would have thought it was already priced into the SP. Obviously the market was waiting for pen to paper.
If guidance is achieved, even the lower end of the range given, the SP will head north again, and at that point shorters will have missed out on a decent % of profit, had they locked in those profits at recent lows. Is this a case of bigger risk, less reward?
"Is "micro base" really a thing?"
it not on any web site but it's taking license...
U need to wait for August results to see guidance missed or not as this upcoming Feb HY results will be 670 mil as informed on 18th Dec ...that cant change too much in 14 days . Market will look for either some positive statement or upgrade of FY guidance to move . If they keep quite on both these subjects then its safe to assume nothing much changed after 18th Dec announcement
I must admit, Left Field, that I like the price of shares I own to go up. Logically though, unless you are keen to sell, there is no financial reason to want the price to go up and the lower it goes the better, as there is more opportunity to buy at a discount to what you think it is worth. Psychologically we want the price to go up to confirm our wisdom about what we think the price should be.
You are not alone...most of us like upwards movements in SP (unless you're a shorter)
I guess what we have been talking about is 'picking the bottom' of a downtrend because at some stage a 'sell' often becomes a 'buy'.
I'm not prepared to call this the 'bottom' and will leave that to others as I'm already over represented in ATM and am happy to hold what I have for the long term.
For others wanting some bargain ATM in their portfolio, I'm sure there will come a time.
Will be interesting to see when the shorts start to cover, after all they have approx 60 million shares to purchase to close their positions, close to $700 million NZD's worth. Thats a decent number of trading days even if average volume traded doubled or tripled.