Chart - SMA

This is why I am interested in SMA.

Below is a point and figure chart. It is used to measure cause and project targets. One of Wyckoff's 3 laws of the market is the "law of cause and effect". See more HERE.

Simply put, the length of period of accumulation or distribution determines how far price will move after price has broken out of a range. I think we can safely say that SMA has broken out of this recent range - and this is an important point as false breakouts do occur but they are usually accompanied by low volume - not the case with SMA.

Here's are the market phases:




Now to SMA - I have a 7.1c target from this using Wyckoff's 1 box count. As an example, I have highlighted the cause built in 2013 which projected a 4c target. You can see that this was only exceeded by a 1/4 of a cent.

I am looking at this pennant forming and am readying to buy on a break of it. Remember, it is the professional money that moves the price of a company. Price movement is not random on the back of news. When a cause is 'used up', stock will be distributed - irrespective of news expectations by retail investors.