Is the bottom in?

Is the bottom in?

A look at the monthly logarithmic chart shows the long term downtrend. No need to draw a line, It’s been in a 3 year downtrend with a fall off the cliff from the beginning of March this year.

The weekly Log Chart does show a massive positive divergence in the RSI (14). This is also apparent on the weekly and daily charts. This is encouraging but the downtrend on the monthly and weekly is all encompassing.

However the price action seems to have found equilibrium this week by finishing on 2.4 / 2.5c range each day. There could still however be plenty more downward pressure over the next month due to further tax loss selling. Let’s face it, how many holders would be in profit on this stock. Fridays big offload to the BUY queue shows that there are still plenty of holders wanting to get rid of their shares.

Overall Chartwise POH looks like a dog of a stock. However at close to cash backing and with the new management structure in place, maybe the tide will turn. A decent pharma deal will move POH significantly so it’s a waiting game now.

I have been accumulating some more this week, just like I have all the way down from 15c which makes me look pretty stupid at this point in time. However, if a reasonable deal happens, punters (sorry, astute investors) should be very well rewarded. At these prices a ten bagger or more is very possible. Conversely if nothing happens within approx 2 years then the chart will still be saying a big “NO”

Monthly Log Chart



Daily Log Chart