TA discussion, page-2

TA on a stock like SAU which has very low volume (liquidity) is almost meaningless - volume confirmation of price is a primary TA rule especially at tops & bottoms - doesn't matter wether its candles or broomsticks, 'head&shoulder' pattern or whatever. All one can say is that the bulk of the 'true believers' are still holding, but even a few of them have fessed up to "having to sell a few for tax reasons". This means that there's no way to get a big low entry point unless the SHTF and a big holder decides to walk - conversely when the good 'real' news comes out, the initial price rise will almost be perpendicular till on it reaches 'breakeven' points for tired longs or low entry points punters decide not to get greedy ... once volume confirms price, then TA will have some meaning. If you can chart indicators a good overlay is the commodity price .... it often leads stocks ... be it gold or iron ore both on the up & down. Look at some classic multi baggers and see how a big rise in volume often tells you the cat is to of the bag and something fundamental that TPTB know about (and you don't) has been acted on.
I expect some further tax loss selling in SAU and other gunna stocks like RED5 before June, but nothing that will alert pure TA traders.