afternoon run, page-18

stevenjd...

Always possible...but look at the first day of the discovery announcement (17 March), where the stock gaped up from a 6.7c close the night before to open at 11.5c that day.

On that ocassion it traded up to 15.5c, yet only closed at 12c, very close to the open price, effectively creating a shooting star on the charts. In spite of the gravity of the announcement...the market sold it off intra-day.

Traders do what traders do...lol

Next day, when everyone expected to see it tank, it opened up with yet another gap...this time opening at 15.5c (from 12c the night before), then closed on its high of 22c.

Amazingly, day three opened higher again with yet another gap up (25.5c), hitting an intra-day high of 26c before finally retracing to form a support base at the new adjusted value levels.

The key here, unlike most other companies, is we did not see the typical pre-announcement run, where a good part of the "good news" became already factored in...which in effect tends to short-circuit the day's rise.

On this issue, compare KEY's chart to BUY's...both ran on the same news, only in BUY's case insiders were allowed to get set, pushing the stock from 5.8 to 10c in the days prior...the result of which is that news day (today), whilst we saw a typical and similar intra-day pattern to KEY, the price realtive to the previous days mearly saw consolidation of previous rises.

In KEY's case however, we have yet to see a range set at which it can consolidate...just as was the case on day one of the initial announcement from KEY...which saw the open and close near 12c.

The bottom line in all of this though is that KEY has just hit a company maker...and the market is not even close to reasonable value yet...just as they did when the initial announcement saw the stock stall at 12c.

Players tried so hard to knock KEY back today...their efforts were mostly to no avail.

Cheers!