200 day chart

I mentioned something 2 days ago that was TOUed after being misconstrued as a ramp.
I gave my reason in short in a follow up post and here is the full 200 day analysis now that i have time to write it up.
Please don't complain about a long post if you have been unhappy with the short one - i can't please everyone in this regard.

Indicator:

Simple Moving Average set at a 200 day perimeter, as view on a 3 year graph.
This indicator has only crossed over the price line 2 times previously - over the last 3 years.
Approximately 2 weeks ago, this indicator crossed to the high side of the price line again.
This has happened with acute regularity, 1st in June 08, then June 09 and now June 2010.
The money flow trend also crossed and gave an extremely bullish signal (obtuse direction over 90degress).
This was the first time the money trend had been broken for approximately 1 year. So that makes 2 confirmations so far as to why i called for a 4 cents rally 2 days ago.
Back to it....Commanding Money level is the Accumulation Indicator, which spiked even more dramatically than the money indicator due to it offering insight into volatility.
This is always a bull sign.
Slow and Fast stochastics have leveled out with eachother and are now dancing in unison, which indicates a consistent level of trade as oppsoed to volatile trade - this is reflected in the volumes traded and the combined like trading sentiments making up a stream of follow the leader.
Ultimate Oscillator levels were high, which may have caused the share to come back through the price line from its 200day crossing. This was 50% due to the overall market action following the USA.

Anyone who feels i have misinterpreted the 3 year graph with 200 day indicators is welcome to say why as usual and anyone who would like to support the view is welcome likewise.
Feel free to put your stuff on the line ;-)



In a thorough conclusion, i can say that we are currently sitting approx 30% away from our 200 day moving average, which can be corrected in due time, in line with the remainder of the market which is probably also down around the same level - even some blue chips. It will be corrected in short term with another sensitive announcement due to the amount of people hanging off ESI's every word.

The short of the fundamentals is that when we get the deposit for the SPV and shares, our books will be transferred from being a little skint to being very healthy. That will satisfy investors, perceiving that the SPV is going to become a tangible reality this year and that we have a topped up bank balance.

The many changes that have taken place with our fundamentals over the last few months will invite a re-rating from brokers and should obliterate the old price expectations in my view.

Cheers

Lautrec