trading range for buying cvi shares, page-2

jensdab...

I guess it depends on your outlook.

There are those who missed out buying at 8c, because they were wating down at 7.5c. Same as those who waited at 12c rather than paying up at 13.5c at the time.

The story continues all the way up...but of course, now we have some who paid 35c or more, who could have got them for less if they waited.

lol...welcome to the markets!

At the end of the day, you need to decide whether you are an investor or a trader...and even here, have a decent understanding of your likely hold period.

Given you have a somewhat removed buying capacity, both in terms of distance and timing, I would suggest "trading" is not an attractive option, as such investing may be more your style I suspect?

If the latter, I personally would not be concerned with any price at current levels...but...

We are facing three trains of thought here;

1. Breakout to the upside, with Monday's open likely to be at or near the low for the day. The run here is likely to see the stock move to the low 30's and possibly even strengthen to the mid/high 30's...if so, a significant break may well be on the cards not long after this to blue-sky (39c+). In this scneario, bickering over current prices seems a little silly.

2. A failure to break higher however may well see a retrace to the 24.5c level (or even 20c again, although in my view any such failure would see the stock perform not unlike it did when it originally broke from the 7.5c line...I am referring of course to a down trend rally, which takes the stock from the lower to the upper boundaries, follwed by a slight retrace to a higher low, which typically signal a significant rally will ensue.

Even here, a purchase at a higher level (say 29c) will only be under water for a short period before getting back in the black.

3. Consolidation at current levels in preparation for a large breakout move. In this case we will likely see a 27-30c range trading period, with the upper and lower limts barely getting touched and VWAP's around the 28c line.

But really...it all comes down to trader/investor expectations. As a trader, timing such moves means everything...much less so however for an investor.

So...my long answer to a short question; as an investor I would just buy at market, as I did myself on Friday picking up both options and shares at market near the highs (but that is simply what I would do and what is right for me may not be for you).

I must admit, the only time I have been in your shoes is when I was off on a holiday to Phuket for a few weeks, where I placed an order for SRK about 10c below the market price (I think it was about $1 back then), in full knowledge I would not be adjusting the order...and with the view that if I picked them up I would be happy and if I did not, as I already had some a rise would also be just as well received.

When to buy and what price is a very individual choice, especially when a stock is at a critical turning point as CVI is now.

Good luck with what ever you decide.

Cheers!