The share price has dropped 20% in-line with the CAH anouncement...

The share price has dropped 20% in-line with the CAH anouncement which is the amount to be diluted if the deal goes ahead.

Daily RSI hit 24.6% (oversold) on 18/5 and is now in mid 30's. Commsec today shows 5 buyers (395,600 shares) @ 1.78 which looks like pretty good support. So whatever negativity there was, we hope has already been factored in.

The way I trade/accumulate this is, I hold on to a core position (that I'm comfortable with) say 50% of X and add more 25-50% of X when RSI < 30% and sell more 25-50% of X when RSI > 70%. Then, wait a few days to confirm direction.
Simple enough!

There was somebody who came on here once [can't remember their name] who said daily/weekly/monthly RSI's were oversold and indeed they were. So, I [bravely/foolishly] bought more and have used those methods ever since.

I don't liquidate all my holdings as I'm long term bullish on the stock, support the current MD/board and believe in its recovery.

For what its worth, Commsec has 2 brokers rate it a strong buy, 1 a buy and 1 a hold.

DYOR.



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