Guys just some comments on double bottom chat -- IMO there is no indication of a reversal on this SP. Market depth shows support at 4c which seems good on the surface but the market depth hasnt been too bearish recently and the sp has been hammered. Just look at price action - we have been in a nasty downtrend over the past few weeks and looking at the last candle there is no indication of a reversal.
3 things to look for (ABC reversal pattern) when betting on a reversal:
1. Break out of trendline (point A) (in this case downtrend) 2. share price's failure to make a new low (point B) 3. break upwards of point A (point C)
It is safe to buy or top up at point C (all three points are undefined at this stage) so there is no hint of a bottom. Having said that, sp did move up nicely on last announcement so it shows that there are buyers out there watching closely. Any positive moves forward fundamentally and we should be fine over the long haul.
Remember whole market got smashed today so dont sweat it. 2012 will most likely be a bumpy ride as well so I am just bracing myself for more carnage to be honest. If you can take anything positive out of 2011, biggest call option bets are on for oil to go to $150/barrel within 6 months. Not too shabby.
QFY Price at posting:
4.2¢ Sentiment: LT Buy Disclosure: Held
