Valuation of share price has always been of interest to me. In the 1970s I used to value purely on fundamentals. Now I value shares purely off charts. It is always intriguing seeing how a share at this stage gets valued and the more people who throw in their valuation the closer the herd gets to a fair and reasonable valuation for the share and in the end it is not so much news or fundamentals but where people place their unfilled orders to sell or buy that are the major reasons for trends to begin and finish. Uptrends invariably begin at a fresh demand level where price has not pulled back to retest yet and uptrends end at fresh supply levels where price has not been back to before. Even if people value shares off fundamentals in the end they have to decide where to buy and where to sell and when they do that it shows up on charts when the order gets filled. QPM at present is massively undervalued by any measure currently and it is only when it began appearing in gainers scans recently that a whole new group of people have become aware of it.
QPM 11 Monthly chart has a valuation at the monthly chart of just north of $1.55. This is the supply level where sellers came out of the woodwork and drove price significantly lower and it is a fresh level where there has been no attempt to test that level yet. There are always clowns around who can not comprehend that price will eventually go back and retest these levels but that is just the ignorance and arrogance of knowalls who probably have no understanding of what supply and demand levels represent or how it works in practice. The thing about the over-superscription to a QPM offer recently is a very strong indicator of demand currently exceeding supply which is driving price higher, so the question now becomes how much higher before supply overtakes demand.
QPM 11 Monthly
The QPM 11 weekly chart has a current price target of roughly $1.55 and the origin of the large red candles can clearly be seen on the chart at that weekly chart supply level. Price tends to move up to test these levels quicker than you would think because there is very little resistance to price moving higher because sellers have been driven out at all levels as price rapidly descended so there is very little resistance as price moves higher under pent up demand.
If you look back at where genuine daily chart supply is for long term holders which is what is being discussed here and certainly where institutions would be looking as their preferred selling area then this too would be in the same general ballpark and whether people on this site believe it or not that is how the sharemarket works and this area will retested at some future point. The buyers who bought around $1.55 when price was last there would not have envisioned their share value dropping to around the 1 cent mark either but it happened.
QPM 11 Daily chart supply level and price target for longer term investors.$1.55
