Technical analysis, page-2

Hi Robert,

the first thing to remember with TA is that it is more suited to stocks with consistent good volume, which IBG doesn't have. Also, I use VSA near trend lines and support/resistance lines...and IBG isn't suited to VSA due to its lack of volume. However, IBG has good volatility for traders deploying smaller investment amounts.




So in summary, IBG is currently teetering on a key pivot point. If buyers step up to the plate then 8 cents is nearest overhead resistance, and still a decent little trade. It might also push up through 8 cents on good news. As Tom Williams says "its amazing how often good or bad news emerges when prices are at pivot points"

The downside risk from here is 4.5 cents. Are you prepared to risk the price dropping to 4.5 cents if you buy in now?

I bought a 33% portion at 6.8 cents. If it rises from here I will buy another 33%, and again if rises through 8 cents another 33%. If it falls to 6 cents on rising volume ill sell out. Follow your own rules.