Technical charting, page-6

You will often find in indices & stocks with significant volumes that Elliott Wave Theory, used in conjunction with Fibonacci numbers, can be quite accurate. It is particularly useful in giving you an anticipated movement in price.

Take, for instance, the ASX200 index. After the 2008 low the index moved up in what would be called a wave 1 then corrected down in a wave 2 which bottomed in early 2011. The market then moved up in wave 3 to early 2015 but fell back to a low in 2016 then continued upwards.

Many, uneducated in Elliott Wave Theory, were calling for an early end to the bull market.

Those, who understand E.W. Theory, would have noticed that the correction back to the 2016 low could not possibly be a 4th wave as the bottom of the wave broke the top of the first wave & that is a major rule in E.W. Consequently, the 2015 high is only the 1st of the 3rd wave, indicating that the bull market had a lot further to go.

Justin Braitling in Australian Leaders (ALF) got it horribly wrong & has been negative for several years. He was looking at fundamentals & not being guided by the charts.

As far as SMN is concerned, I have simply highlighted the double reason why buying should occur around 65 cents. The price will possibly not reach that double bottom but if it does then it would appear to be a very good entry point. I, for one, will be a buyer.

I am not a seller under high $5.00 & even then might only sell about 10% of my holding. Those who sell in the high 70 cents level with the possibility of buying back at 65 cents are risking missing out if the anticipated news arrives.

If I do sell a small percentage of my holding, it will be at a price based on the length of the wave movements.