oh dear 2, page-29

Tui, you say:

"I wonder exactly how many of these chartists know what's going on with a stock like this?

This is fundamentally driven."

Over the last week various posters have put up charts that look postive while the price has been going up, and received a good response from others. As soon as there is a negative signal, someone feels the need to bash all chartists.

Of course the stock's price is driven by fundamentals - charts only reflect what the market's reaction is to those fundamentals - which can alternatively be stated as the charts reflecting the ebb and flow of supply and demand for the stock. Right now the price is trending up because of the imminent news we are all waiting for. But that doesnt mean it cant go down for several days after a strong move up during that trend - anyone who refuses to accept that possibility is foolish.

Yesterday's price drop looks like a 2 day reversal pattern, and its good that the volume was down on a down day, but indicative of a lack of buyers stepping up that it moved down so far on the reduced volume. MAybe its entirely coincidental that yesterday's high coincides with the intra-day high of Feb 28th last year which was the largest volume day in the lead-up to the high water mark of 8c in that move (the following day) - but I dont think so. This all suggests that the price has gotten a bit ahead of itself and some supply from last year was drawn out - and there's nothing wrong with that, its a healthy process and clears the way for the trend ultimately to continue.

If you believe NWE's SP is on the rise, as I do and as you say you do, then there should be nothing to fear from the daily ups and downs - and there will be downs. But there's no need to bash chartists just because we choose to factor in the information we interpret from charts just because you choose not to.

Cheers, Sharks.