The double bounce is actually an extension from a longer standing resistance level which was recently breached on significant news.
It shows that any significant news (can argue what is and isn't significant) is the real catalyst here so it is basically impossible to imply any LT market movements for this stock using TA.
For short term you are right though and you can infer some information with this stock that is derived from the usual market trading patterns.
For me, and Scattie is correct in saying that news had the direct result of ~ -50% of the SP. All the oversold jargon might be true (as we do know a heck of a lot more now than we did at the same levels (as boy1 pointed out) but perhaps that leads us to think. 1. Maybe BGS was overpriced then and 2. Maybe the news we know now is suggested to be corrective of this price..
The SP drop happened fairly quickly and you would expect +/- news to have the similar results (news of similar significant nature) which I might add is coming shortly.
This is the age old problem and it is up to you as the investor. Top up now knowing what you know expecting a quick increase of ~50%? or top up and bad news expect sub 1c easily (which i mentioned will happen if the next news is bad) --- say about mining for example.
IMO it is worth topping up now for the potential of mining. I mean that opportunity doesn't come around that often with such low costs with such good connections irrespective of grades (as almost proven we do not need 8g/t!).
BGS Price at posting:
1.2¢ Sentiment: LT Buy Disclosure: Held
