Mind The Ramp - SAVANNAH Res. (SAV)

Wednesday, 19th March 2014 16:56 - by Osakisushi

As usual, no idea and zero interest in what this lot do. I simply run the numbers.  It’s easy to assume LSE:SAV has been ramped and now faces the other side of that particular coin.

The Dump.

Unusually though, despite it appearing to want to find a bottom of 7.65 or so on the current cycle, I’m not terribly alarmed.  In fact, if it manages below 7.65 – ideally by closing below such a point to give the price time to react – it should find a bottom at a trend testing 5.75p

Any further weakness below 8.875 makes the initial drop target almost inevitable. The chart below has a little box below it with a BLUE line.  This silly looking image represents minute by minute movements since the share moved through BLUE.

This BLUE line is blooming important as the share price broke through it toward the end of February this year. It tells my software the price of this share has stopped going down and thus, I should look for a movement in the future which will signal it’s going up. In the case of SAV, it’s fairly easy to extend a trendline since the share ‘broke out’ and this currently suggests it might go up if the price exceeds 12.5p. Of course, the big question is “WHERE WILL THE PRICE GO?”

My software calculates the next major point of interest is at 17.25p but instead of 12.5p, it wants the share to trade above 13.6p. Being the bloke who programmed a wimp approach, I can understand its point.

But the crazy thing is, I just advocated watching for a price dropping massively from current to 5.75p as this would represent a heck of an opportunity for a 3 times rise in months or years ahead. Or, of course, days. I suck at timeframes! Even the minute by minute box suggests 12.6p would be really rather important.

Good luck with this one. It looks like a Pump and Dump with a difference.