ASX:CLV - IS CLOVER CORP HEADING TO $2.70 A SHARE?
Since July 2018, CLV looks to have been in the process of re-accumulation. The chart looks great.
We had the initial push down from $1.80 to the $1.30 area and notice the volume that came in and the close. This may have looked very weak at the time but there was a lot of stopping action taking place at this level. The strong hands were stepping in to stop the price. We saw a nice automatic rally back to the $1.70 level, before testing the $1.30 level again and notice the lower volume. Less supply down in this area again. Over the next 3-4 months the stock went into phase B, where the cause was being built in this stock - the bigger the cause, the bigger the effect. It was interesting to note that the highs were getting lower and this may have looked weak again. When we see this the stock will normally break the lows and spring back up. We saw that in late November. A final push to shake out the weak hands. The spring and the re-test were both on extremely low volume compared to the selling climax. The stock was ready to move higher. The stock rallied from $1.30 to $1.90, making a new high and a beautiful change in character and sign of strength. Phase D was complete with the back up to the creek, and look at the hidden buying that came in again, a nice spike in volume.
The stock now looks ready to mark-up. The point and figure chart currently projects an upward target of $2.70
Time will tell if the chart analysis is correct. I am not currently holding the stock but may look to enter on a pullback.
We had the initial push down from $1.80 to the $1.30 area and notice the volume that came in and the close. This may have looked very weak at the time but there was a lot of stopping action taking place at this level. The strong hands were stepping in to stop the price. We saw a nice automatic rally back to the $1.70 level, before testing the $1.30 level again and notice the lower volume. Less supply down in this area again. Over the next 3-4 months the stock went into phase B, where the cause was being built in this stock - the bigger the cause, the bigger the effect. It was interesting to note that the highs were getting lower and this may have looked weak again. When we see this the stock will normally break the lows and spring back up. We saw that in late November. A final push to shake out the weak hands. The spring and the re-test were both on extremely low volume compared to the selling climax. The stock was ready to move higher. The stock rallied from $1.30 to $1.90, making a new high and a beautiful change in character and sign of strength. Phase D was complete with the back up to the creek, and look at the hidden buying that came in again, a nice spike in volume.
The stock now looks ready to mark-up. The point and figure chart currently projects an upward target of $2.70
Time will tell if the chart analysis is correct. I am not currently holding the stock but may look to enter on a pullback.