ChaleaYou continue to assert 2nd hand news. Old news. Supply and...

Chalea

You continue to assert 2nd hand news. Old news.

Supply and demand are caused by underlying fundamentals.

Allow me to give you a lesson in FA. This lesson in FA I taught myself the very first day I invested in stocks.

If I can receive a 6% return on a term deposit at the bank then a bank stock such as CBA or WBC is not an attractive investment if it pays a dividend of 5%.

But if it pays a dividend of 7% it is attractive, especially if some capital growth can be gained in a positive earnings cycle.

So when the dividend yield is 7%, there is demand. When the dividend yield is 5%, there is supply.

This is why in normal markets, bank stops fluctuate between tops and bottoms.

When yield becomes too low, the big boys sell. When yield become high, they buy.

It is the same with PEN. Due to the earnings forecast in the scoping study, supply has grown & demand has shrunk.

For example, after the scopying study was released, I immediately sold half of my PEN holdings.

For me, the upside going forward is still reasonable but not outstanding.

Your chart is simply picking up data made from sell decisions based in FA.

In the stock market, the professionals make decisions based on FA and not on TA.

Your chart is old news.

If there is a bottom, it will be due to FA and not TA.