I have to say that I have been dabbling in low cap speculative stocks on the ASX since the late 1980's. It was so much easier back then. But when I read the latest 4DS announcement my reaction was "I see it but I don't believe it !!!!". I mean to say, a CR that turns out to be not a CR OR the CR you have when your not having a CR Everyone knows that a CR on this type of stock is really bad news. The result is always a drop in the SP to somewhere below the CR price. But to then announce that the CR was postponed, what sort of dummbkoph scheise strategy is this. Unbelievable I think. So now the SP has been driven down to below that 6.5c proposed CR price level, the CR fell through (maybe the professional investors are smarter than I thought they were), and on top of that there will be another CR attempt sometime next year (this appears to be baked in.
The question now is where will the SP find support? Have a look at the fib retrace levels on the daily chart below. The 78.6% retrace level was right on the bottom of the gap from back in August 2023. The only rule that to me seems to be apparent with gaps is that the gap edges can provide support and resistance. The gap support and fib 78.6% retrace level at 6.5c was blown away with the CR debacle. Combined with this, with retracements the 50% level always seems to be a stabilizing level for price action going forward. The 50% level of the 6.5c to 2.5c range now in play, is around 4.5c. Below this level I'd be looking at the 3c area as possible support.
The weekly chart below provides more context and demonstrates the value in monitoring the fib retrace levels.
I'd wish all LTH'ers good luck but I think they need more that just good luck now.
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