My general view is at this end of the market it is all about continuous news flows and hitting milestones without delays and/or timelines been pushed out.
Essentially, IMO gap theory becomes a self-fulfilling prophecy at this end of the spec market (or the better word the penny stock market) without continual news, and boxes to mining ticked, because people move on to the next best thing. Ultimately at this end of the market traders and short termers is what drives SP up, hence why I believe in free carry strategies, because once they leave, because of say delays to timelines or something else like the next best thing is over there, SP tends to drift down and they probably re-enter just around the next news event - for example with good spec stocks, the various Fibonacci, like 61.8%, in downward trends, IMO can be self-fulfilling prophecies where the actual FA of the stock has not changed but interest in the stock has gone (TA). With ADN, it is actually moving from an explorer to miner and IMO at this stage of the cycle you tend to get the highest level of SP volatility, but the thing to look out for on a FA basis is long term trend (1 year plus), but short term obviously SP is drifting down. That is TA is more a shorter term concept IMO than a longer term concept where FA has not changed in a stock IMO. This is where HC can be a gauge on TA IMO - how many shares have any of you been invested in when in your stock code few post, but then all of a sudden over a week period there are endless posts, only for those posts to reduce back to minimal a few weeks later.
Compare that to bluechips etc - what drives them is predominantly FA, not TA. If you think about blue chips they are driven by profits and dividends, because if the outlook changes profit wise (an FA event) so does SP hence why those stocks tend to follow P/E ratios and rules IMO IMO etc etc. Or another way to put it, is I am still waiting for that gap for CBA shares to get filled LOL - I assume there is one there somewhere between $5 and $10 LOL but can't find one of those 1990s charts to show this point LOL.
Obviously my lack and complete ignorance, I mean complete ignorance, of TA nouse is showing by this post hence why I focus on FA (and free carry strategies).
All IMO
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