Have just finished accumulating options with a LONG term perspective on my investment.
The TA being done on AEX is excellent... if you are trading AEX.
From a Med (up to 6 months) - Long (6 months ++) term point of view... the weekly fluctuations are irrelevant.
The proving up of the fundamentals of AEX (Gold and U) does not happen overnight.
Anyone who has experience investing in mining stocks will understand that planning a drilling campaign takes time. A newish trend in planning a drilling campaign is to compile sophisiticated data models of the resource where historical drill samples are available, like what AEX has. This will form an initial resource definition, as well as aid in mapping out WHERE to drill. This takes some weeks to prepare, and once finalised, will be released to market in conjunction with the commnecement of drilling.
Drilling can take months, processing of results can take months, subsequent resource calculations can take weeks.
Only once all that is done, and a positive outcome yielded, can the red-tape start to be addressed.
Probably more cap raising to fund BFS's and pursue correct legislative permits.
Again, that all takes time to finalise as well.
Courting of "sophisticated investors" to underpin the financing of plant construction, infrastructure etc also takes time (months) to finalise.
So... if you are looking to trade in and out of AEX, then the charts will be important.
However, for me... I just sit on the sidelines and watch all the traders squirming at the thought of AEX breaking the 31.8% fib retrace... or the 30 day MA... and it provides much entertainment.
For AEX investers (as opposed to traders)... the fundamentals are still there, and any one of 2-3 imminent announcements (project manager, commencement of drilling etc) will blow away any current charting theories being currently tabled.
Keep the charts coming... they provide great entertainment for the more patient holders.
Cheers,
MisterMoon
AEX Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
