It has been a while since I posted a 4DS chart so I thought I’d...

It has been a while since I posted a 4DS chart so I thought I’d have a look at the 4DS price action over the last few months to see if there were any lessons to be learnt. Since the long term upward sloping support line on the weekly chart has been well and truly broken I decided to focus on the daily multiple moving averages chart. See chart below. I can remember the chart posted by @Arrr! back on 20/01/2020 where he pointed out the Bollinger Band compressions that occurred each time the SP hit and then strongly bounced up from the long term support line. The same sort of “compressed coiled spring” breakouts can be expected when the long and short term MMAs compress. Have a look at the compression of not only the MMAs but the 50 SMA, the 100 SMA, and the 200 SMA, that occurred on 24/02. Correct me if I am wrong but didn’t the COVID-19 Panic selloff on the World Markets start on 24/02. After the SP broke below the old 5.7 cent equilibrium level, pink horizontal line on the chart, what chance did 4DS have of avoiding the selloff? A drop below the 5.7c level would have been a good signal for Traders, especially those long with 4DS CFDs, to exit quickly.

The bottom of the plunge down came in on 09/04 with the highest daily volume in the prior three weeks, and at the 2.8c level. It’s interesting to see that this significant price volume action occurred just two trading days prior to the “4DS Granted 23rd USA Patent” announcement that was released around midday on 15/04. Not a “News Leak” but a leak that “New is on its way”, I think! It was a real relief to see the SP rise strongly on the announcement and then to not be driven back down to the Open level. The strong rebound in the SP was stopped at the 5.7c level, the old equilibrium level. The end of the up move was signalled in my VSA (Volume Spread Analysis) chart with a “Buying Climax” SOW on 08/05, which was preceded by a “No Result From Effort” SOW on 05/05. See VSA chart below.

So my take on the current state of play with 4DS is that the SP is now back in up-trend but more consolidation will occur around the 5c level, overhead resistance is currently at the 5.7c level, and the downside support levels are at 4.5c and 3.9c. Given good news, the news we are all hoping for, I am still looking at the 50c level as a conservative target. But if a second Market Panic occurs, or the News is less than what is hoped for, the lower support levels will come into play again.

I hope that the other Long Term Holders who read these 4DS threads ignored all the “credit crisis” and “failure of FIAT currency” clap-trap that was being posted on the other thread, took my prior advice that to be selling would be walking straight into a “Smart Money” trap, and survived the fear induced plunge in the SP. I find this type of long term investing, or as I call it “Hold and Hope Investing” very challenging, and I am pretty sure that the best way to survive after you take a position is to avoid or ignore all the noise that is generally just aimed at ensuring you are the loser, and take notice of what the charts are telling you.

All IMO – good luck everyone.