Time is money

Saturday, 28th April 2012 11:13 - by Moosh

Sefton Resources (TIDM code: SER) A technical assessment of the price (SP) rise between December 2011 and March 2012: 1. A distinct rise (in my opinion) in daily money flow between December 15th and 28th while the SP was dropping; divergence suggesting a possible change was to come. 2. News on January 25th resulted in an unconfirmed bearish engulfing candlestick pattern, suggesting a further SP drop may happen. 3. SP went oversold on the slow stochastic oscillator on February 1st. 4. News on February 16th took the SP to 2.8p, which coincided with the top of the daily Ichimoku Cloud, before retracing. 5. The SP bounced from the 9-day exponential moving average on February 17th and began an extended rise to 3.8p on February 24th, at which point the SP was extremely overbought on the slow stochastic oscillator. 6. News at the start of March was followed by a bounce off of the daily middle Bollinger (20 period) on March 7th, eventually peaking at 4.6p. 7. Consecutive higher SP peaks of 3.8p and 4.6p corresponded to respective lower daily money flow peaks; this bearish divergence suggested a fall in SP could come soon after....which did happen. I liked this short-term trend because it managed to give a lot of technical signals, even with news being issued during the trend. The initial money flow divergence observation which presented itself in December 2011 was the trigger for me to keep an eye on SER over the next few months. Although this presented well before the major SP rise, it did mean that I was paying far less at sub 2.5p (to just buy and hold) than those buying at 4.5p+. Time is money...think about it.