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..
What are your thoughts on TA reliability during large rebalancing events?
What I have found is the high volume helps TA reliability. I guess large volume rebalancing events falls into this catergory.
...TA unfriendly stocks (poor reliability) tend to be illiquid with low volume trading activity or those that have a very large percentage of buy & hold type shareholders (tightly held)
Be funny if Kernel Wealth man is right and there is no big sell down
Yes it will be interesting to see what happens. There may in deed be no huge sell down and associated big fall in price?
I've got a cheeky order in which is unlikely to be filled? This is for CEN not MEL.
Thus if there is a big price fall I'm happy to grab some CEN. (already hold both MEL & CEN)
If there is no big price fall it does not matter but if there is going to be a big discount on the current price I'll partake.
I have my buy prices for both MEL & CEN but they mustn't be realistic looking at the depth and morningstars valuation in ASB securities. 7-8% yields not realistic in todays environment.
I wouldn't be surprised after seeing the article in the herald this morning that there will be more than enough eager buyers to prevent a significant fall.
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