Some people are leaders, some people are followers. Trends reverse and someone has to be the first to buy.
No one knows when a downward trend will reverse, but what you can know for certain is when the market cap falls below your own assessment of value. That's the Fundamental Analysis reason to buy in a downtrend.
Even if you just look at Technical Indicators, there's still reasons to buy. Trendlines are only one kind of indicator. Another indicator is the stochastic oscillator, it's currently signalling this is a buy according to my software. I'm sure it isn't the only indicator suggesting the sellers will run out of steam soon.
So the short answer is that it depends what indicator you use, how experienced you are, and what your tolerance for risk is.
stochman
Some people are leaders, some people are followers. Trends...
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Last
11.5¢ |
Change
0.005(4.55%) |
Mkt cap ! $366.3M | |||
| Open | High | Low | Value | Volume |
| 11.0¢ | 11.5¢ | 10.5¢ | $2.185M | 19.39M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 13 | 1892350 | 11.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 11.5¢ | 3719 | 1 |
View Market Depth
| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| PEN (ASX) Chart |