“”tricky things these charts for things like explorers.. same problem exists in Medtech type stocks and lots of other micros. These are companies that really don't have anything much...yet. Where the deal drops or the drug approved or gold is found etc then the chart becomes totally redundant.”""The chart above is of CHN with channels, Gann fans and fibonacci retracements. None of those predicted the surge that occurred from a discovery. You could put whatever other trend lines, resistance levels, speed lines, pitchforks, fib arcs, Elliot waves etc and you still cannot, predict a drilling result. If you could it wouldn't be called exploration. ""Firstly your right a chart could not predict the Julimar discovery....
But my post is not in regard to that is in regard to what happens after the discovery announcement.... Or in DEV's case before a discovery or not…
Fundamental analysis will always trump Technical analysis....
You stated in your second post...
"the exit hopefully will be achieved without any need to look at a chart.. as in there will be a good discovery and the price will punch ahead."Lets look at CHN….It gapped up to the 0.90c mark in what is called a runaway gap after the discovery announcement..... It continued up to a intra day high of $1.38 and fell.... It then formed a small pennant that actually broke to the upside but collapsed a couple of days before the announcement of the CR at $1.05… (it actually had a $1.53 target price if the CR was NOT announced at that time)…
It then formed a larger Symmetrical triangle that ended up braking to the downside... now I exited when it failed to break to the upside at $1.24.....
Now my argument is that to do this trade based on charts then you save yourself a world of pain for the months that CHN was in a correction afterwards .......
It bottomed at around 0.88c a month after it fell from the triangle ….
And did not exceed the $1.24c sell price until 22
nd August 3 months after the chart sell price…..A lot of pain....
Now this is where the trade becomes profitable….
If you held 1 million shares and sold at $1.24 because of the chart and reloaded at 0.90c at the top of the runaway gap (knowing that runaway gaps rarely get filled) you would of made $340000.00 on that trade alone…..and you could of then re brought all your shares back at 0.90c - These are the trades I look for....
In regard to DEV there are a lot here that would not of thought we would be trading at these levels without as Markie points out...A discovery....
However the charts were telling me that accumulation and consolidation was occurring and we were heading higher...Each pennant or flag I have posted since I entered at 0.10c was to test those theories and it has worked every time except once where it missed by 0.01c.....target price which is acceptable in TA…
My latest chart may or may not come off... because I do not have a crystall ball.
But the consolidation of the pennant in expectation of some good news next week will send DEV to its target price and beyond IMO with or without that news......Technically it could still break to the upside without any news......
The charts are telling me there is a lot of strength and positive expectation in the share price and there is a very good chance it will continue up… now of course that would change if they released a completely negative announcement.
However I think they will take a leaf out of CHN book and extend the drilling continually for some time… stopping any sudden drop in share price...... Worked a treat for CHN Pyramid Hill....
Now if you look at the RXL chart it is telling me that there seems to be a lot more pain ahead……They are all waiting for exploration results from Grace however that chart told me to exit and not return….I do not know much about RXL fundamentally but I doubled my money on 1 trade in a 2 week timeframe…..Based on charts...
Not crossing swords with anyone but I do strongly believe that charts have a place in any stock whether a micro explorer or a Blue chip and if used in conjunction with Fundamental analysis you can make some serious money from them …..With DOM I exited at $6.75 with a intra day high of $6.79 reloaded with a double bottom at $1.99 and resold at $5.53…. 2 years later because of a double top……Without charts I feel you are flying blind.....
Anyway that’s enough for a Saturday morning GL all holders charts looking good IMO….DOW behaved well last night and so did gold…..
CHN chart below….Still believe there is a lot more potential upside percentage wise in a stock such as DEV that could be close to a major discovery (my hope and a prayer thought) than one that has already 10 bagged….AIMO DYOR and hope DEV is successful…
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