Great post G, unfortunately Sometimes the SP can follow your...

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Barneydebear

4,528 Posts.

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16/11/17

09:58

Post #: 28840556
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Originally posted by The Guatemalan ↑

Back again 52570, & others interested in chart patterns -

My theory (Quote #1 in my above post I’m replying to ) : i.e. that

“after reaching a 40c peak for the 2^nd time, I expect the SP will then retrace slightly, down to 36c, for a few days”

has been blown out the window i.e. no retracement took place at all (from 40c downward).
(If you look at the period 02Aug – 01Sep.on a Daily chart for LYC – 1 of the usually highest volume traded/day small-cap miners for years – its chart pattern for that period was a prime example of that theory).

So here’s the next one – backed up by Commsec’s https://research.commsec.com.au/Tools page today:

“BGS is trading above its upper Bollinger Band.
Relative to recent price action, the stock is currently overextended and due for either a pause or retracement”.

If you look again at LYC’s Daily chart, but this time for the period 11Sep – 06Oct., you’ll see that its SP, after peaking @ 21c peak on 11 Sep.
- then retraced and reversed back up again to that peak
- then again retraced and reversed back up a 2^nd time to 21c, but
- then did not retrace a 3^rd time instead breaking out above 21c on 09 Oct., rising further to 23c, then falling
back to support @ 17.5.

IMO that is what will likely happen to BGS – i.e. as it did not, as expected, retrace from 40c a 2^nd time,
but because of this afternoon’s Ann continued advancing up to a peak of 44c today,
and will likely rise further tomorrow,
once that steep rise in the last few days runs out of puff
I expect the an inevitable retracement by profit takers will bring the SP back to 40c

- now having become a level of support
- replacing that SP as a level of resistance (on its way North)

as shown on h00ts informative chart per his post :
https://hotcopper.com.au/posts/28773959/single

and where I’m in the queue @ that price for a further small parcel, despite the level of buy orders ahead of me for ~408,000 shares, @ COB today. Guata.

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Great post G, unfortunately Sometimes the SP can follow your predicament because many take your skills as gospel... Becoming a self for filling prophecy!!? Barney stopped discussing the accumulation by Trading method, because it impacted his own purchases and limited the ability to buy on dips...

BGS Price at posting: 43.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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