Totally agree Baron, As well as there being pressure on the...

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Upstart777

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09/02/17

22:44

Post #: 22502633
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Originally posted by Red Baron ↑

There is no right or wrong answer as to whether Fundamental or Technical (charting) analysis is best. Most successful traders/investors probably use a combination of both.

One of the most successful investors, Warren Buffet, only invests in stocks he understands - never bought a share in Microsoft throughout his career. Doubtful if he uses charts as he looks to the long term & understands what he invests in. AC adopts this philosophy as reflected by his in depth knowledge of the lithium market.

There are also many successful technical analysts, crashman obviously picked the right time to exit, I assume he used a bit of fundamental analysis to pick the right sector/company initially, and will probably do very well when he re-enters GXY. The trend is your friend.

Normally when a company does a placement, the share price inevitably (not always) drops to the issue price. Sophisticated investors thought GXY was a good buy (over subscribed) at 54c, for $60 odd million worth. I doubt chartists can use the post placement drop in the share price to predict it'll drop more. Such events need to be isolated from technical analysis.

One final note, never fall in love with a stock.

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Totally agree Baron,

As well as there being pressure on the Lithium sector overall, any company that places shares at a set price is emphatically declaring a perceived value to the market.
"Why should I pay more than 54c!" cries the mob. Or " WTF I paid 65c when it's only worth 54c!"

The market will react accordingly and more often than not will overshoot the mark.

Technicals at this point are a valuable tool for plotting the reversal of this negative trend.

Conversely they were quite clear when the upward trend was weakening preceding the peak.

Last edited by Upstart777: 09/02/17

GXY Price at posting: 55.0¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

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