compare the numbers, page-9

re: compare the numbers: mvanle mvanle,

Has there never been a truer word spoken about the trading in Zinifex....this stock is now very very firmly in the hands on the day traders and trying to buy for the long term just has RISK written all over it.

ZFX was trading in a pretty normal pattern up until about 4-5 weeks when the volume started to pick up.
Before then the average vol was around 6M per day now it is heading to 8M and with the volume that is going thru right now it will be over 10M.

The ATR (average true range for 14 days) was around 40c 4 weeks ago.It has now doubled to nearly 80c and that in less than one month.

I fear that ZFX will continue its wild ride for many days to come, which will trying to buy means ending up in a lucky dip. You could buy today (not me thou) and end up in 48 hrs being 10-15% down the drain.

Tonite now I am short, and I know people will think I am downramping, but they are wrong as all I am just going with momentum as it appears on a daily basis.

My thinking is this stock needs one huge capitulation day to clean out all the shorters, and to shake the living daylights out of everyone who is pushing this stock around. This should then set the base from which ZFX can build up again for the long term.

Stocks (and this inc KZL, PEM and the likes) which go up 15% in one day have really only one way to go the next and that is down, as any slight fall at open will find the people that bought at highs yesterdays will abandon ship and the day traders that bought it Monday/Tuesday will try to lock in profits before that dispappears.

As I type Zn pricing is down 3.84% and if Zn continues to fall o/nite another large fall in ZFX could again be on the cards.The stock may even test the lows of Monday.

Cheers
John