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Tuesday, 29 November 2016

Spackman BULLISH Technicals in More Detail: 29 November 2016

Spackman BULLISH Technicals in More Detail (Chart 1): 29 November 2016

【Use the correction before and during Italy referendum of 4 December 2016 to add buys on dips】

Spackman has been in re-accumulation mode as illustrated above in Chart 1 below blue resistance lines. High Volume buying from first attack-up support meets blue resistance, and it begins to shake out retailers with low volume selling. High volume buying is then re-initiated at higher lows repeatedly and with low volume selling as post-action consolidation. Low volume selling are basically from unloads resulting from weak retail buyers who do not have money to pay up and contra players who can be feared easily using such correction fear tactics. The stock keeps on being absorbed by strong hands based on the volume data. Corrective shake-out operation has successfully shaken out many weak minded people who wants fast money. These people will always be rocked off from wealth boats because markets are designed to never reward people who punt for fast money. Markets like to punish gamblers first before rewarding solid technical traders and fundamentals investors.

Spackman BULLISH Technicals in More Detail (Chart 2): 29 November 2016

Chart 2 shows high volume breakup with a strong show of intention to rally from here on. 
Because of the many deliberate attempts to shake out weak minded holders, this stock will have a significant upside. Multiple shake-outs essentially mean this: multiple high volume buys on price-up actions are accompanied by multiple low volume shake-outs as buys that led to an eventual breakup as above. This means price action had been strong buys in the market, price action ups were buys, price action downs had also been buys, buys and even more buyings in the market. This means that a high amount of stocks are kept in the war chest for the eventual bull rally in the stock. This further means that the eventual push-up has to be significant, otherwise the financial forecast and the edge that the buyers have that led to the bullish volume flow are not being fully capitalised on. Market is hence very far away from even any distribution mode, i.e. re-accumulation is at warm up stage only. On final furthest induction, it simply means this: that this is a safe play, safe buy, and safe investment since buying is near the bottom.

Spackman BULLISH Technicals in More Detail (Chart 3): 29 November 2016

Chart 3 shows the market being cushioned for Spackman. Selling continues to be a shakeout operation. The Italy referendum of 4 December 2016 may create fear, and this shakeout to come is for adding buys on dips and testing the blue resistance-turned-supports. Once this blue resistance-turned-support band is successfully tested, the stock is expected to fly up significantly in 2017.


DNA Technical Rating for December-2016 and 2017:
Bullish
【Use the correction before and during Italy referendum of 4 December 2016 to add buys on dips】

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