My PERSONAL view is that charts don't really apply until you have more of a mature stock/business, that smaller end stocks that are still going through massive (attempts at) growth and business change/upheaval are more at the whim of good and bad news, and importantly the perception of that good and bad news by holders and others(all with different objectives and time-frames).
I am also aware that it is exactly these people, amongst others, that make up the market. That is why the SP is in the toilet. It deserves to be there because that is what it is.
But like the saying, "the customer is always right" I don't believe that "the market is always right either", otherwise why would we have One Direction, Idol, Guy Sebastian, The Spice Girls, Beiber, Tony Abbott, X-Factor, Who Wants To Marry a Millionaire Lesbian Farmer, etc.
Doesn't mean the charts are wrong as such. It just means that I think that they don't actually apply to these Small Caps punts. They are useful. But that is not the constitution under which we operate. IMPIIO.(In My Personal Ill Informed Opinion.)
Cheers,
Cal
BGS Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
