Hi Brad1m and Chook,Thanks. Another cue that investors for the...

Hi Brad1m and Chook,

Thanks. Another cue that investors for the long term should know is that the 200 day simple moving average is an important tell-tale sign.

The nature of its (the 200 day simple moving average) DIRECTION is very important.

Right now we know that the prices of POH are above the 200 day simple moving average.

However, if you take a good look at its( the 200 day simple moving average) direction, it is still pointing down, almost like wanting to begin to display some signs of curving around the bottom...in other words, we are at an important juncture, awaiting proof of bottoming long term of the 200 day sma. Sequentially, the stock price goes over 200 days simple moving average first, then forms a bottom so that the 200 days simple moving average forms a bottom , curving up and going in synergy with the direction of the stock price- which is strongly up!

Once the 200 day simple moving average has turned the corner by curving the bottom, that will mean prices would have begun to rally because moving averages are by definition a lagging indicator, and that's the time those who have held long or have invested in the stock would wipe away all tears from their eyes, and there will be no more tears.

Conversely, if the stock price falls back below the 200 day simple moving average, possibly due to some major fundamental issue that is yet unknown to the investing public ( our ASX is defined statistically as semi-strong efficient by market efficiency theory, we are not totally market efficient where all information is widely disseminated to the investing public ), then of course the technical picture will be dashed, and there will be some wailing and gnashing of teeth:( - long term investors who watch the 200 days sma will likely bail out of it as a defensive move.

So to all, and for those technically minded, watch the 200 day simple moving average for its direction, a simple classical technique to be timely and to be on board the train, and for those looking for an indirect way of knowing whether POH will pass the test of a breakout or otherwise of its long term technical patterns ( of course you can use volume and other technical indicators to do the same, but for long term investors doing this is easy and indicative).


All the best again,

dascore