gaps, page-2

great post, W.

sorry to go off topic here, but i imagine this might be a good port of call for astute minds, and i have a bit of a question of my own, which i would appreciate feedback on.

I see quite alot of posts by people who claim to use TA to determine their price targets based on LT structures. More often than not these sort of posts seem to rely entirely on simplistic use of historical resistance prices.

I'm just wondering what other peoples thoughts are on this sort of analysis when it is applied to stocks that have experienced major dilutive events or capital restructures along the way?

For instance, i often see it used in analyzing recaps or backdoor listings that have been operating in the sub 10c range for years in a sector completely unrelated to the sector they were originally listed in.


I know i have often remarked in the past that i don't believe there is such a thing as "right" or "wrong" analysis, so long as there is consistency in how one applies their analysis and they are getting good results then i feel they have a valid case for using their method.

But this situation described above just makes me scratch my head. Can a chart that was trading a few thousand units at 30c back in 2006 as a mining entity REALLY have any relevance to it's more recent machinations at 3c after a few hundred million shares have been injected into the pool?

i know i have my own opinion on the matter, and i know that a fundamentalist would have a clear cut answer also, but i am interested in what the other TAs here think.


TIA, and sorry if i'm hijacking the thread:)