Sometimes you have to wait and see

LAST Thursday it certainly looked like we were going to see a weekly pivot point form, but the fall of almost 100 points last Friday put paid to that.

I have no explanation for why the fall occurred, as it was not pre-empted on my charts.

The big move down indicated lower lows to come and we saw that on Monday. We then saw on Tuesday a move up of a similar magnitude to last week’s fall.

We will now just have to wait and see if the current move up results in a weekly pivot point forming this week.

For this to occur it requires only a modest move up for yesterday and today, for the All Ordinaries to close above the 5828-point level needed for the weekly pivot point to form.

On Monday, a divergence occurred between the ASX 200 and the SPI futures contract, indicating a move to the upside – which came to pass on Tuesday.

Divergences between BHP and Rio Tinto continue to pre-empt moves either up or down in both stocks.

As per last week’s column, I bought 40,000 Lynas Corporation (LYC) on June 29 at 10c for a total of $4020 including brokerage. The initial stop is 9.7c, the swing low formed on June 27.

The initial target is 14c — the spike high formed at the end of 2015 and again in February this year.

It is possible it will spike above this level to 16c, as there is a projected target at that level.

I may take profit around either of those levels depending how it behaves when it approaches them.

There is also a strong resistance around 23c, which may be reached quickly if the volume is strong enough on the break of 14c.

The A2 Milk Company (A2M) broke its stop last Friday and was sold on Monday at $3.79 for a total of $11,340 after brokerage.

It is likely to pull back and test the $3.60 level, the spike high formed in May this year. It may present another buying opportunity after it tests $3.60.

Seeing as I sold A2M at a profit and have moved the trailing stop up on Resmed (RMD) to $10.03, which is above break-even, I bought two more stocks that came up on my weekly search.

They were both bought yesterday and the details will be in next week’s column.

The first was Big Un (BIG), which I mentioned last week.

It broke above the $1 target/ resistance level last week and after trading to a high of $1.23 it had a small pullback to $1.025 on Tuesday this week and moved up to form a buy signal on Wednesday.

As a result, I bought 5000 shares and the stop will be Tuesday’s low of $1.025.

There is a target of $2, so I will just watch it for any sign of a reversal on its way to that level.

The other stock was Hansen Technology (HSN), which has moved up from $3.10 to $4 since March.

After breaking above $4 on Monday it had a pullback and daily pivot point to the upside on Wednesday.

I bought 1500 shares.