As I see it, todays action in VCR is reflected perfectly in the VCR chart.
(1) A bounce off a 38.2% fib
(2) A bounce off the 21 day moving average
(3) A gap made on 20/8 at 2.63-2.72 was filled.
If the company had not come out with a tactically timed announcement today, the stock would probably be down testing the 50% fib somewhere between 2.30 and 2.40 in the next few days.
The announcement is reflected accurately in the chart.
In the absence of the announcement - VCR was going down big time and could have cracked significantly today or tommorrow.
There are still major downside risks - if you don't know what they are you deserve to lose your money.
I for one would not be buying at these levels.
This is not to say I do not support VCR - I do - it is just overpriced especially with further capital raising to come.
Cheers,
Christian
VCR
ventracor limited
