Hi ZWilliam. Thx for prompting me to respond. My target for SDL end Dec has been .45c which I have held as a view for quite some time.
Technically, .45 is a key support and resistance line, as well as a linear regression channel leading us up to the .70 ish mark early next year. I think the trick with investing/trading is to form a view as to when we are in a trading cycle versus a heavy fundamentally based accumulation pattern. My view is that price movements are influenced by both factors and tend to weave a "wave" in a trend formation.
However, if you look at FMG as an example, channels tend to govern trading waves and fundamentals govern revaluation waves which frequently will put the SP "out" of the channel. (Only to start another one).
My opinion is that we have a very strong fundamental accumulation situation where we are very confident that .45c is undervalued and below real value (looking at broker reports and potential).
A point that I have learned through experience is that you need to be mindful of the shifts between trader control and fundamental control of the SP.
If the question is whether .45c is a support or resistance, my view is "support".
SDL Price at posting:
47.5¢ Sentiment: LT Buy Disclosure: Held
