1. As Perdy has said, this is just an exercise to help him with...

1. As Perdy has said, this is just an exercise to help him with some TA stuff when the opportunity presents. I rolled over my NXM winnings into a couple of other plays, but I hope the company and current holders do well.

2. Depending on time frame, I think FA always trumps TA because FA leads the TA. Hit a duster and FA says the SP is going down no matter what the chart pattern looks like, TA will give you a clue where it may stop. Hit a bonanza drill result and it works in the opposite direction. The caveat is that FA needs constant positive news flow and always be aware of MC levels. That's why I believe you need to trade/invest with an understanding of both FA and TA.

3. I use TA to find the big moves. So as long as you can recognise the overall pattern, then its up to you where you draw your lines i.e. wicks or bodies of candles. I will usually use the body to ignore the auction shenanigans and then adjust out to using the wicks if a breakout looks like its coming. It really is subjective, what suits your eye and how aggressive your trading plan is. I'm after a general shape which we both agree, at the moment, appears to be a Rising Wedge.

4. "The problem i have here is that i can't determine a target price because we are at all time highs" . For the Rising Wedge, zoom out and continue your lines until they intersect. I call this the decision point. Basically at this point, the market will have to make up it's mind which way it's going to go, and at this point the Rising Wedge pattern must turn into something else from a TA perspective. Up, down, sideways, who knows?

5. "and i can't drawn a downward trendline to determine a target". The Rising Wedge is a bearish pattern, so my focus is on a break of the lower trendline. The first target I put on the chart is the start of the Rising Wedge, in this case the 32.5 - 29.5 area. Next I'm marking the 50 EMA and 200 EMA as they generally provide support areas in a downtrend. After that I'm looking for psychological support levels at round numbers i.e. 50, 40, 30, 20 cent levels and MC 100M, 75M, 50M, 20M.




6. So say on Monday PoG takes a dump to US$1700, a big FA lead into TA. My support areas are as follows:
a. 40 which is both a round number and coincides with the 100M MC level.
b. 30 which is a round number, 75M MC and the 50 EMA.
c. 20 which is a round number and 50M MC.
d. 16 which is 200 EMA.

7. If the Rising Wedge plays out over the next week or two until close to the end of the pattern at say 55. My support areas are as follows:
a. 50 which is both a round number and coincides with the 125M MC level.
b. 40 which is both a round number and coincides with the 100M MC level.
c. 35 which is the projected 50 EMA.
d. 30 which is a round number and 75M MC.
e. 20 which is a round number, 50M MC and the projected 200 EMA.

8. As I'm currently on the sidelines, if point 6 plays out, then I can set out a plan to buy back in based off FA, TA and MC e.g.
a. 10% @ 40
b. 20% @ 30
c. 30% @ 20
d. 40% @ 16 ridiculously undervalued.

9. If I'm a free carried LT investor if/when point 6 plays out and I believe that in 1-2 yrs time that NXM will have a resource that justifies a 300M MC (ignoring dilution events), then understanding TA will help me not panic sell if the SP drops from its current 47 to 40/35/30. I can also use TA support levels to top up as funds allow.

10. "I guess the other thing that could happen is we get DD tails from crusader next week and we get a runaway break therefore setting up a new trend?" It doesn't necessarily need a positive announcement to change the interpretation of a chart. If the next couple of days trading played out as per below:



Then I would change my TA interpretation from a Rising Wedge to an Uptrend Channel and would probably jump back in as the TA is more positive.



At the end of the day the Rising Wedge pattern is currently in play for TA. It doesn't mean sell now. Just be aware of it and how it to use it to your financial and emotional advantage if it plays out.

GLTAH