uptrend nicely intact, page-78

asteroider,

IMHO 90% of the ASX is unashamedly manipulated. If it was not, I could not make a profit. I rely on the market being manipulated in a predictable and algorithmic manner by the big fellas.

As such, I have absolute faith that the share price of any equity has but a passing relationship with the underlying "value" of the associated company. "The market" has a mechanism which establishes a price for a share by driving it north till it cannot be driven any more, then driving it south till it cannot be driven down any more. The fair price is somewhere in the middle.

In this particular case, I bought in at the recent low, quite deliberately. Bones will confirm that I had been waiting at that level for some time. Anyway, the point is that I expect some resistance at 31c, and a test of the support on the red fork I have super-imposed on Bones chart. I dont expect it to have anything to do with OVR. It has to do with the market, and how the market works. These little retraces around the median lines of the price action are quite normal, and healthy, and will keep the big bad bears away, while allowing good steady appreciation. The action of the bots is to push price to some pre-determined level to guage the reaction of "the market". In this case i would not like to see price breach 31c until the red short term Median Line has done so. There is far too much chance that it will send indicators into overbought prematurely, which might provoke a market based reaction.





The interesting bit comes when you see good support above the blue median line. If you see that, and there are good prospects for the company based on well understood news, you will probably see price rallied to the top blue line. It is at that point, the top line, that you need new news to provide the spark to get the SP through to new highs. Then you will need to see the market support that share price against a volume test, so that the market has confidence in the price, just like the market did not last time.

...and believe me that the traders have not gone away, and they are unlikely to unload their holdings, unless they see signs of weakness in the price (just like last time). Why would you hold on when you understand market action and know that you can swap what you have for a bigger slice at a lower price?