BPO 0.00% 0.3¢ bioprospect limited

this week...

  1. 3,958 Posts.
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    Hi all

    My quote before friday's trade...

    'Bearish signals (besides obviously a price decrease), would be a spike in early trade, and then a close around 12.5. This would indicate a lack of buying power to push through the resistance level.'

    Well we closed at 12.5, on a day with massive volume. The difference between the above and what actually occurred IMO was the lack of spike in morning trade. While 1 mill was traded in the first 10 minutes, price only reached 13.5c. When I say only reached, I mean that this bearish scenario i was talking about was if price reached say 15c. This clearly did not happen and the fear that BPO will over-extend itself didnt occur...

    So what do we make of what has happened? Daily chart looks good in that the last couple of days we have had trading above the old resistance levels.

    Weekly chart looks even better when you see a large white candle, with the highest close in over 12 months. The spike in volume aswell as the high volume seen in the run about a month ago indicates that volume is accompanying the trend.. a crucial TA principle.

    We closed at 12.5 and hit a high of 13.5 last week. For the weekly trend to remain intact trading for the week needs to take place higher than 12-12.5c. This would potentially form a base here, and turn this previous resistance level to a support area.

    With price making 12 month highs now and BPO previously in such a sustained downtrend since hitting 30c, there does not appear to be any other clear points of resistance that need to be overcome, but i am sure there are plenty of holders who bought on the way down that will want to sell when price hits that level again.

    Bottom line is that the long-term uptrend is still intact. New ground was made this last week, and volume is with the trend.

    The 12.5c level remains crucial. But instead of trying to break above it as was the case for the last month or so.. bullish signs would be if price can stay above it.

    Just my thoughts...

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