Patong, trying to rely on price movements in an illiquid stock like SMN will bring you unstuck more often than not. There is only reason why the price is where it is & that is the cap raise.
The determining factor regarding the depth of the correction is mathematics.
Obviously, some shareholders are selling with the thought of making a short-term profit. They saw a price above 52c & they had an offer through the SPP to buy at 52c & obtain options.
There will be some shareholders who can calculate of profit out of selling below 52c then taking up the SPP with options & still make a profit.
The time to start using Fibonacci numbers & wave lengths will be when SMN receives approval & volume picks up in a bull market.
The only reason the share price would go below 49c is if someone was desperate enough to sell in a market with little volume & they had no other option.
SMN Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
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