At the end of June/early July the LOGP sp doubled from around 30p to 60p in 7 days. There were 7, fairly equally sized, consecutive white candlesticks. Then there was some consolidation before the sp started to rise again.
Remember more than 7 consecutive white candlesticks is almost unheard of. It's very rare you get 8 consecutive white candlesticks. Usually it's less than 7 before you get a pause. With a share where there is still strong buyer demand the pause will be brief and any pullback will be small.
There is no time limit. How long the sp stays within those tight BB's is entirely dependent on newsflow and speculation. I've seen them tight for just a few days before the breakout. Other times the sp can drift for months in tight BB's if nothing is happening either in the public domain, or behind the scenes.
All those tight BB's mean is that the buyers and sellers are evenly balanced because basically nothing is happening, in the public domain, with the share!! Usually the volume whilst the sp is "trapped" in those BB's is low. A pretty good sign that a breakout is about to occur is when the volume starts to increase and the RSI starts to increase. That's often a sign that speculative (or sometimes informed) buyers are returning and they expect good news soon.
thanks for that. I have noticed that most often its between 2.5 to 3 months before the bb ping the share. Does that sound right? I will keep an eye on Rmp for us and keep us posted if anything changes. Blowster do you have an opinion?
The key for me here now is that LOGP hold above the bollinger bands for the next few days which will be a very bullish signal... Might not get a sharp move until news but can see an upward trend beginning which could see 5-10% gains daily for a period of time. ATB
"Looks good but why? The fundamentals haven't changed - so what has? Any more info on the farm out? There has to be a catalyst - usually a leak"
The sp is rising, dear boy, on speculation that news is imminent. Buyers are speculating it's good news, hence the buying, hence the rise!! Whether there has been a leak, or not, who knows? I'd be very surprised if somebody doesn't know what's happening behind the scenes even if LOGP and PVR don't leak. So many other players are involved in the recovery factor calculations for Barryroe and the farm out negotiations for LOGP's 3 fields.
PS. At the moment the LOGP is above the upper Bollinger Band.
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