I only use chart to guide me on the behaviour of traders on how long a trend is or how fast the move is. If you use the previous pattern as a guide, the selling would not abate until there is about 8 days of sharp selling. Last time it moved 30% down over 8 days. We haven't got to 8 days of selling in a row yet. The down leg last time was 6 weeks long. We still have at least 3 more weeks to go. I think this company will not come out with any news to defend the stock as they really have nothing to tell the market. I think they outsource most things. They probably only collate the information and do very little while they wait for their partners to do the work.
The selling is like a bushfire. It will stop whenever the shares they want to sell run out. There is no support by the look of it as buyers are scared the wit out of them at this moment. We might even see it testing the low of 46c. The share price at the close of the day when it set the previous low was about 48.5c. I bought in at 47c on that day. Today will will certainly breach that closing price. I cannot see any thing that will lend support for the next 7 days unless the company comes out with some positive new news.
AC8 Price at posting:
48.8¢ Sentiment: None Disclosure: Not Held
