Down 22.5c today - who would have thought after the mad scramble for the Blackrock sell down stock on Friday.
Looks like the shorters should have waited until today?
Hoops breakthrough certainly not following through immediately. Unless today changes a couple of daily black candles will make the TA look somewhat less attractive though it might still be considered 'back to test'.
Hmmm ..a great example of a conflict between a fearful media and a favourable TA..
TA has been showing a bullish divergence these last 6 weeks which says the high number of buyers were optimistic of a possible bargain in the near future.. not fearful as the media lead us to believe..
If I believed in Conspiracy Theories this would be a candidate.
Previously I wrote on this thread that I believed MEL's value to be between $4.00 to $5.00..but the recent market behaviour indicates the price should be a lot higher than that..
TA says buy
Disc: have no MEL
Originally Posted by Hoop
I wondered on Wednesday if it was wise for me to present my chart showing MEL's breakout. I wasn't overly confident as breakouts do fail, albeit rarely...and there would be a good reason if this breakout failed even though the oncoming share dump was widely publicized....However TAers (Chartists) get criticised (losing their credibility by using hindsight) when they produce a chart after the event....so I went ahead and published the chart on Wednesday and held my breath...
At close today the huge number of shares presented to the market at Friday's close were gobbled up at $6.05 up 5c for the day and above the rectangle pattern price breakout ...Earlier today, charted price support was tested with a price fall (throwback) but the price bounced up during the afternoon and at market close remained above it's support.(very bullish)
Score (so far) TA=1 shorters and bargain hunters =0
Monday trading has question marks and perhaps later on as those shares get on sold through the system...Next week we may get educated as how the system protects itself when a sudden but expected re-balance causes a surge of shares which could swamp a small market..Greekwatchdog post tells us part of it.....All very interesting
This result shows TA can be reliable during large re-balancing events.
down again..561c -27c.... Breaking support ..Is it a failing breakout in progress Hmmmm..a crazy market...What did I say about not believing in conspiracy theories.. Glad to be away from this market and on the side lines
Originally Posted by Biscuit
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