Finally broke both the upper resistance line and $3.89 to the upside. The volume was also over the minimum 30 million I mentioned. We got 31.9M. Which to me says there was institutional buying on Friday.
I don't know why some get jacked off at charts and some like MissG say to put the charts away because its going to $3.00 soon enough. If you think what I say and the way I say it is full of crap, then put me on your ignore list. If you guys can contribute more than a few lines and better, then please go ahead.
What I am saying is what I see and believe and my experience with price and chart patterns. And I have to say it like that. Example, if it can't break the upper resistance line, then $3.00 is a real possibility. Means, $3.00 is more likely than $4.00 if it can't break the line and can't get over $3.89. That is exactly what it means. What is wrong with that? You want me to give an exact day and price? I think it is better than MissG saying "will be going to $3.00 soon enough". What does soon enough mean?? What time frame is "soon enough"? My recent posts were to prevent holders from buying if it is going down and selling if it is going up. Because when people like MissG come on and talk $3.00 using one sentence, some holders may get nervous. And as we have seen even in the past 6 weeks, it can be tricky. But tools like the 22EMA, 50MA, RSI and support and resistance lines, hourly chart, patterns, particular candles will tell what is more likely to happen.
On the topic of charts: I also did not pay much attention to charts. I had no idea of the potential of charts. Part of this was that I didn't believe in them. Until one day, I met this person who opened my eyes to charts. He seemed to be very experienced. We were both trading TLS. It was when TLS was 1 week away from trading at $2.57 in early March 2011. I had bought Qty 500,000 of TLS at $2.82 and was holding. The other person was trading in and out with Qty 300,000 and was waiting in cash at that time. When he saw what I was doing, he suggested I sell out as TLS was about to go down in the next few days. I asked him how he knew and to what price he though it would be going down to. He said it is going down to $2.56 in the next 5 trading days. He was so sure. When I asked how he knew this, he said from the chart. I was intrigued. He continued to explain the pattern he was seeing. I sold out as he suggested. Sold at $2.71 and took a $55,000 loss one afternoon. I then waited. In the days to follow, TLS started to go down as he said. Slowly but surely edged down. My eyes were focused on the $2.56 he said. Looking at the screen day by day. On one of the days, it got down to $2.59. This person asked me to be patient and wait one more day. It then got down to $2.58. Then one Thursday morning, on the open, 20 minutes into trading, the markets were shaking and TLS traded down to $2.57, just 1c short of his target. He then messaged me and said, "Go, go in now, just buy". TLS hovered around $2.57, 58 for less than a minute, then started to move up, recovering cent by cent, $2.59, $2.60, $2.61, $2.62. Heart racing and with my friend saying "buy, buy, don't worry, just buy", I put chunks of orders in, Qty 100,000 @$2.59, another Qty 100,000 and another Qty 100,000 and Qty 200,000 more. Until I bought back Qty 500,000 around $2.60 average. It closed at $2.65 that day. I was amazed how this person had got it so right and was kind enough to share his charting experience with me. I was converted. I had just witnessed the power of chart patterns and the wicked world of stock price behaviour. Instilled into my memory forever, from that day on and with 1.3M dollars geared with margin loan, I was committed. I spent hours, weeks, months, every spare moment I had looking at charts. Thousands of hours. I remember TLS started to go up and every 1 c was worth $5000 to me. I use to go into the Commonwealth Bank and withdraw 5k cash nearly ever day. It would draw the attention of the tellers.
Soon after buying that amount, my friend urged me to hold all of it and said to me, "you know it is going to $3.00 and then $3.40 don't you and you are going to hold aren't you?" I said yes, I will hold it. He urged me to just hold all. But I only held until a little over $3.00. The 200k was too good to resist. If only I knew it was going to $6.74. Meaning $4.14x 500,000=$2,070,00 + 8 dividends.
So, this is why I take charts very seriously. If you look long enough and close enough, you will see what it is going to do. But I can understand for someone who hasn't experienced that moment like I did, they would remain a sceptic and probably not take charts so seriously.
Coming back to the current, I still think a slow and steady climb up to $5.00 and even beyond. But notice how sometimes TLS gets played. Example, everything goes up and TLS opens red, then mysteriously closes green and stronger than everything else. And many instances where we see a -2.00% heavily red day when everything else is only -1.00%. Being pumped and dumped and vice versa by institutions or computers. Always pay attentions to volume. Volume is the finger prints left from the institutions. And a stock needs the support of their money to go up (see volume bar on the chart below).
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