4DS Charting Guru's Feedback Required, page-3

My chart for 4DS and thoughts re price targets and technical analysis follow.



It’s difficult trying to apply technical analysis to stocks like 4DS. The share price tends to be driven by Smart Money coming in to take large speculative positions. In VSA (Volume Spread Analysis) terms the previous breakout on 8/01 represents either weakness or strength depending on the price action following the breakout. The price didn’t fall significantly in the following days. This period could be interpreted as the Smart Money testing the price level to see if there were many more sellers at lower prices. This testing has now completed with another breakout on high volume. If this is another impulse move, basic Fibonacci analysis suggests a price target of around 10c. My cycle and momentum indicators suggest the move will continue higher.
Staying with the VSA theme, the huge volume move of 25/10/2017 created what I call an anchor zone. The high of that move served as solid price support up until the huge volume move on 8/01 which in turn has created another anchor zone with the close on the 25/01 breaking out of that significant level. This is considered very bullish.
I’ve found that technical analysis is very helpful in the short term. I am already a holder of 4DS and hence didn’t purchase more shares when my system identified a buy on 22/01 and then again on 24/01. I was expecting higher prices following 24/01 given that my cycle indicator identified a price level versus indicator level bullish divergence, i.e. the price level was lower while the hook in the cycle indicator was at a higher level (points A and B on the chart). Hence from a short term technical analysis view the 4DS chart indicated a strong buy at the close on 24/01 with a short term price target of around 10c. Of course the share price could reverse on Monday, but as a short term trader I would place a stop at the 50% level of Thursdays move, i.e. around 7.5c. This trade would then have a worst case trade return of about 12% and a best case return of 50%.
Note that this analysis is in the short term only. In the longer term if all goes well with the 4DS technology I would expect to see the historical levels of 30c and then 60c reached. Technical analysis is all backward looking in that it identifies price patterns in the past and then assumes (or hopes) that the patterns repeat in the future. From my point of view if I get a 60% to 70% trade entry and exit accuracy from my chart analysis I have an edge that can be proven to be quite profitable.