Osakisushi on Toilet Paper

Friday, 11th April 2014 10:37 - by Osakisushi

Every now and then, someone makes a silly comment along the lines “you cannot map AIM shares”. Quite genuinely, this sort of nonsense really irritates me as it’s right up there with “the world is flat ‘cos I’ve never been in space’.

How anyone can think the stock market designed separate algo’s for different sectors defies belief. Motive TV’s chart since the beginning of time is a perfect illustration of how much attention is paid by the market to AIM shares. I’ve even given TWO images, one with closing prices and the other with the lows of the day.

Both show the same thing. The stock market pays one heck of a lot of attention to a shares price and even tends to move it logically in relation to the trend.

As a result, Motive TV is supposed to be regarded as a share which has stopped going down! Even better, sometime around the end of this year or a few months into 2015, it will maybe start going up. Or cease trading…

The funny thing comes from the dark BLUE line on the chart as, whether I view closing prices or the low of the day, the share price has carefully reacted to this line. As a result, I tend to view the price simply as having stopped going down and therefore, intend look for reasons to believe it might actually go up with integrity. Obviously, the pretty YELLOW line currently suggests the price need only exceed 0.3p to make this dream come true, a simple 16x increase. How hard can it be?

Annoyingly, Motive TV seem blessed with a marketplace with a sense of humour. Every now and then, the share experiences a day or two of fat finger trades which totally throw my software into confusion. The spikes last October suggest any near term movement exceeding 0.028p will lead to 0.38, maybe even 0.043p but essentially, they agree with YELLOW on both charts above. Until the end of this year, perhaps even May 2015, this share price risks remaining as a training exercise for Work Experience school kids in some market makers offices.

What annoys me, rather a lot, is the important detail some traders will even know what colour of toilet paper is being used in this companies offices due to extensive research but until the yellow line on the charts above is challenged, their money risks being the toilet paper itself.

Mr Grumpy? Me. Nope. The chart tells its own story.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.