why didnt the sp skyrocket?, page-12

Doug,

I am confident that i knew not what i said!!

There is a little gutter of supoort/resistance that formed between 11/6/2009 and 8/7/2009.
Note that this level was retested a few times in a bid to fill the gap that the gutter became. The share then went on to accept that the gap had been filled and off the share went towards $12 - which i considered to be a wayward leap that was not justified. That upward movement trailed the All Ords, which also commenced it upward movement on the 13/7/2009.
When i say it trailed the all ords, each had a different tangent and KAR was waaaay too steep to be sustained.

Since the 28/9/2009 (specifically) the share has come back down to earth and its priceline and the All Ords have weaved eachother a number of times...in and out...above and below (similarly to the way you might view a moving average price line on a graph).

That continued until Christmas last year when KAR decoupled from the All Ords again and lunged higher...too quickly.
This could only be sustained for around 10 trading days before again coming back down to earth - in line with the All Ords growth line on the 15/1/2010.

Since that date, KARand the All Ords have danced around eachother weaving in and out relative to eachothers tangent of growth.
14/5/2010 we can see that the share begain to decouple from the All Ords again on the back of a substantially good reserve report. Almost immediately the All Ords begain to tank in line with its parent the DOW.

The share is curently trading in a slightly over bought/over priced region right now as a result of the All Ords value.
I anticipate that this relative action will continue until such time as the next announcement confirms a rerating of the shares value.

So until it drops a bomb announcement, i can forsee bobbing and weaving in an All Ords dance.

If the All Ords wasnt tanked at this time, i would see things a little differently due to some indicators that have been in tug of war with the All Ords.

For example, the Money Flow indicates enhanced investor confidence in the share at this time and many investors have been accumulating in anticipation of the next positive announcement.
The share has simply put on hold its growth line and if it had not done so (in line with the All Ords) the share would now be trading at between $9-50 and $10-50.
As far as support and resistance goes, the share is in BUY territory right now. The recent volume indicates that many have been buying in accumulation mode. I assume they are anticipating the recovery of the All Ords of course.

Again, i must repeat that the overboughtness, the overvaluedness of the share is only a relative appraisal - relative to the All Ords. If the All Ords was healthy, this would be a screaming buy, with Ultimate Oscillator, SAR and blah blah (few more indicators) all saying BUY.

So it appears that the share is becoming a tightened spring, ready to bounce substantially after the AOrds settles down.
Accumulation is the word of the month for shareholders and there have been no substantial bail-outs by any larger investors.
It appears as though the ones with the big money are also aware that the share is trading in line with the All Ords and so they are not selling.


Cheers

L