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14/04/17
14:18
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Originally posted by h00ts
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Thought I would post an overview of my thoughts - I have no agenda other than PLS is a stock I have maintained a T/A interest in for a while now stemming back to a tagged request to post a chart on it - on that front I hope Madmacs is O.K ? he hasn't posted for quite some time.
The more times a major level gets hit and fails to break the more likely it is eventually going to fail - this was evident when it failed to break major resistance at 60c earlier in the year and then this week when major support at 40c failed. I was expecting a stop run could be on - hence why I suggested maybe not to have a tight stop - I thought 38c may be a good number to place a stop and that a hammer reversal candle was a reasonable chance if it only fell to around 39c then buyers may have stepped into to bargain hunt after the shake out.
The fall down to 36.5c was totally unexpected as was the volume of selling - Make no mistake the T/A on PLS is super bearish there is no technical chart reason reason to buy this stock its not even oversold on the RSI yet - I have no idea on the fundamentals or real value of this company - The only comment I make would be a generalization - a half a billion dollar market cap for a company in the orphan phase is getting up there with best of them.
its human nature for stock holders who have bought on fundamentals to look for nefarious reasons as to why the share price is going in the opposite direction to what they believe should be happening. It is true shorting can be used to mount a low ball take over bid - It is true algorithmic trading and related party churning can be used to lower the share price of a company for accumulation - this can be aided by negative media articles and broker downgrades.
But it is also true the share price can get ahead of itself and profit taking is a normal function of the market as are the natural forces of supply and demand - What is also true is when companies are seeking cash they will be using brokers who will be sounding out instos and sophs - Many times after a precipitous share price fall a cap raising will be announced - Ask yourself if you got a nudge and wink you could re buy stock you held at a lower price in the future would you not sell them and bank the profit - you could buy more stock for less $$
Company directors regularly do this with performance bonuses and stock options - My personal observation is I believe there has been a fair portion of legitimate selling going on - The outstanding short positions falling along with the share price would be confirmation of this view.
Whats really going on here ? well I have no idea it could be any number of things some stock or sector specific , macro events , political or regional instability all coming into play - I think all holders and would be holders should keep an open mind - I will just stick to reading the chart - It could just as easy turn around and confirm a new buy signal next week - It is possible yesterday was a capitulation bottom but we need to see confirmation off that - it could just as easy back test 40c for a smallish DCB before making new lows.
Happy Easter good luck to holders - the stock looks to have a bright future as long as the BOD can pull it all together.
cheers HOOt
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Hoot's - I'm well aware that you have a decent H/C following and good on you for that but I read your last post and see you covering all points of the quadrant with wishy washy thoughts and predictions that really add up to 'I don't know' and basically say's - 'I am not going to stick my neck out'.
I'll stick my neck out and not quote anything macro, regional or political BS and I will say off my own bat that I reckon the fall is due to mainly the delay in the issuing of a mining permit and the associated erosion of confidence in investors sentiment bought upon by fear and the looking elsewhere for a quicker return - simple as that and if I am wrong and PLS is not trading up around 90c when this BS passes, then I will take it on the chin but at least I have stated a clear and solid opinion.
Now how hard was that Hoot's - we all know the old saying - even a broken clock is correct twice a day.