Since it seems to be a hot topic I've posted a current chart of VCR which is available at the link below. I'm not including them in the post because the number of hits and subsequent cost of downloads ex bigpond was getting out of hand - probably largely due to people opening threads who weren't really that interested.
On that chart you will see the following annotations.
1/ This is the rising 261.8% resistance which VCR burst through with such vigour onthe 20th August. You will note that VCR was already overbought according to MACD from the day before (the red lines) and that in the past this has caused the stock to pause and consolidate.
2/Even more extraordinary - VCR tried to break right on up through the 423.6% resistance two days later. This was a major sell signal and I know of at least one Hotcopperite who sold beautifully above this point as we watched in amazement. The failure here immediately caused the previous 261.8% resistance to now become support (4) - look at the bounce.
3/ With retracement now established $3.81 becomes the top for calculation of falling retracements, the base is 73c. This returns the falling (blue) set of support levels. Confirmation of the 38.2% level on the 27 August (5).
6/ The falling 50% retracement appears to be the general level producing the proposed $2.25 rights issue. This is a surprise as its usually the 61.8% level (currently sitting at $1.90) that would be used.
Its my guess that the promotors of the issue have therefore priced it at what will later appear to be too high a price since I would expect that the 61.8% level will be visited again.
Maybe it will be wise to hold off on taking up any rights in the expectation of buying more cheaply on market. Time will tell.
Click HERE to see the chart in fullscreen.
Cheers all.
VCR
ventracor limited
