chart march 4, page-47

Lange08

You stated that Hangseng was "just trying to correct what was incorrect".

What I find even more interesting is the fact that you have assumed that Hangseng IS definitely correct and Swissboy IS definitely wrong when only time will tell where the share price will end up in the short term to medium term. Especially now with all the uncertainty in the Middle East and the oil price continuing to increase rapidly due to fears that the problems will spread to Saudi Arabia.

Technical Analysis is quite subjective and 2 different people looking at the exact same chart may end up with totally different conclusions depending on the indicators they rely on and the methods they use.

Here's an example:

In early to mid 2007, when the price of PEN was nearing 10 cents, Hangseng was as confident that he was right back then as he is now about PEN's share price direction. He was also using Technical Analysis at the time.

Like now, he took offence to posters who had a different viewpoint to himself. When someone started a new thread with the heading 'took profits need news to go further',

Hangseng replied with the following post:

"you have NO IDEA about PEN and need to research a lot more.........."(Note: profanity was used but this has been removed to comply with HC guidelines).

When someone posted that PEN could potentially be heading South, he posted the following:

"T/A is showing this won't happen. PEN has good support at current levels and the hammer candle is a good support sign. The trend channel is distnict and the bollinger bands have tightened right up.

Expect the trend channel could continue for a while however any good news (resource notification. share plan, etc) and it will quickly rise without notice IMO".

"I was right before if you recall and I am right this time as well."

"and all who sold yesterday are about to be very sorry indeed....and the reports out of Soth Africa is what you need to watch"

"PEN will test .10 next. After that it will take off never to return to the 9's."

Shortly after, PEN reached a high of 10.7 cent and started tumbling finally reaching a low of 0.013 cents in Dec 08.

Look familiar to what's happening now? So you can see from the example above, Technical Analysis is extremely subjective and only with hindsight can you be a 100% sure if you've read the charts correctly.

Interesting to note that the 'cup and handle' was also mentioned back in Feb 07 as well.

Please note that i'm not saying that Hangseng is wrong again this time or that Swissboy is right as only time will tell.

I'm just saying that this is a public forum where everyone should have the right to share their opinions and viewpoints without getting attacked, verbally abused and accused of having ulterior motives because you never know... the person may actually be right.

Also, if you're really a long term investor in PEN, there should really be no reason to get defensive if chartists post that the share price may drop a few cents in the short term.