a bounce soon or long term hold , page-9

Hi Arthur: Firstly I wouldn't be looking at the share price in relation to the company fundamentals as they are totally independent of each other. Sie is trading technically rather than fundamentaly.
A good place to start from is to look at the channel SIE is currently trading in. As at the close of trade Thursday lower channel support was 0.048cps, mid channel resistance was 0.0586cps and upper channel resistance was 0.0686cps. Rarely do the outer extremes come into play and SIE trades close to its mid channel.
Moving to the exponential smoothed data, both in the short term and medium term, SIE is in a diverging downtrend with the short term trend line descending quicker than the medium term trend line. The divergence is not sufficient to produce a sharp correction. Currently, for a long term trend reversal, SIE would need to trading above 0.0675cps.
So what does it all mean? According to my analysis, SIE has now been in a down trend for the past 42 trading days ie a sell signal was generated on the 12th October when SIE closed at 0.065cps. All things being equal, SIE still appears to be 15 trading days away from entering into a new up trend. That puts us into the second week of 2005 before the next buy signal is generated.
On saying that, if SIE's management is concerned about SIE trading below 0.06cps in regard to the upcoming rights issue, the company has a habit of stimulating the share price when it needs to. We have seen a couple of those type of announcements come through in the past. Either that or the management intends to reduce the percentage of shares held by the small investors within the company by making the rights issue less attractive..
Could be an interesting finish to the year. If you follow the Elliott Wave Theory, SIE's Intermediate time frame is showing a bearish wave 3 formation(72%) with a target price of 0.0541cps..