Hey mateIm interested that you use technical buy/sell for a...

Hey mate

Im interested that you use technical buy/sell for a company like SMY.

I use charts - but only for those stocks where to a degree it is self-fullfilling due to the number of technical traders..eg the high profile blue chips. ( BHP best example).

For a company like SMY which has to run up to its proper valuation at mining commencement, i think technical trading is like reading tea leaves.

Lets say you are wrong, and you know as well as I that SMY medium term will have to go up..when do you get back in? Currently rading at 82 and looking strong.





"In my message 106 dated 25/2/04 I said that the SMY charts showed a Rounded Top and had broken down thru the Up Channel...the stock would fall back to 79c - possibly over shoot to 77c.

The last couple of trading days has confirmed that SMY is now outside the previous Up Channel...it has found support at the 79c level as I predicted and the overshoot has not happened...though it very nearly did!

Chartists will be asking themselves if this is the beginning of a descending triangle pattern or will we see the uptrend resume in the short term.

My answer is this...it will not be possible to confirm for another 2-3 trading days however, IMHO, the probability is that SMY is beginning a descending triangle pattern and I am not aware of any company-specific news to alter this in the short term.

Therefore, I would expect SMY to trade bewteen 79c-84c with buyer volumes reducing over the next 10 trading days. In other words, buyer volume will not exceed the high that produced the rounding top of 1,537,000 and consequently, buyers will not be able to push SMY above 84c.

After the third occasion that SMY closes at 79c, we can expect a breakout either down to 75-76c or up.

In the meantime, I am going to sit on the sidelines...what ever you decide...good luck!