The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
You need to get yourself loaded up for Pro Realtime......its free, and gives great charting tools for end of day data.You will be able to see these things much more clearly than on ADVFN charts. No worries by the way! Good luck. Based in Wales mate, the green green grass of home!
Hiya dude. You are right that support becomes less valid as time goes on. But psychologically, when a price hits the same as the lowest its been in years (in this case 57p), it becomes a very strong psychological support - people think "Hey, it held last time @ 57p" and brings people in. In brought me in! On the MACD histogram - the fact it hasn't gone lower, when the SP has indeed gone lower is a bullish divergence. It means the SP may be getting ready for a move up. Best book I can refer you to to learn more about this is Come Into My Trading Room - by Dr Alexander Elder. He calls it the Hound Of the Baskervilles signal. Good Luck mate
No worries mate. Don't know how far down the road you are with spotting divergences, or even understanding what they are or mean. Forgive me if you already know - but I thought this link this may help if you don't. Study the first picture graph closely, particularly the trend line they apply to the MACD histogram - you will see when you look at the share price above, that when the SP ticks down to a new low, the MACD fails to register a new low. This is a bullish divergence. The MACD should really mirror what the stock is doing. If it doesn't it could signal a trend change. http://web.streetauthority.com/terms/macdhistogram.asp Regarding your stop loss question - I havn't got a loaded one - don't use them anymore. Because this is what I do full time, I'll be glued to Level 2 on nearly all my trades ongoing. I'l know when to get out (hopefully!) if I have to. But I'd like to think that would be before I lose 10%! LOL! 1WJM
Are you trying to pick an argument or what?? LOL! Only joking mate......I would never think of it like that! I love discussing theories. I too have read John J Murphy's book The Visual Investor - and his other one (commonly known as the bible of technical analysis - and a damn good read too!) - Technical Analysis of the Financial Markets. My take on CWR, and reasons for buying in today: 1) One of the best way's of using the MACD (and it says this in the Visual Investor) - is to focus on the histogram. I personally don't use any MACD lines at all. If you look at the chart for CWR you will notice that the MACD is showing a bullish divergence. Between the 11th Jun till now, the SP has ticked down from 98p to 57p. Yet the MACD failed to make new lows - in fact after the stock price almost halved in price, the MACD histogram didn't go any lower than the 11th Jun - and in fact immediately started climbing back toward the zero line - without the SP reacting yet. It shows that under the surface the stock may be coiling up for a move (may being the operative word here - nothing is guaranteed!) 2) Look at Volume....relatively heavy volume came into the stock on the 9th Jun at the support line. Whilst that level of comparitively high 'effort' did little to move the stock (which can often be seen as less bullish) it does however provide a valuable 'layer' of RECENT support at this price range. 3) From purely a technical standpoint 57p has proven in the past to offer support. Look back to Dec 08 and Nov 08 - in both months this stock tumbled from over £1 - to hit 57p only to bounce back up to over £1. This is an historical precedence - nothing more - but based on the fact that 57p appears to be the last line of visible support on the charts, and coupled with the fundamental fact that this company isn't going bust - it's just had a few delays in its product line - then I think this might be a good place to buy in. 4) Stochastics are (and have) been oversold for good while. Whilst this could percievably continue for a good while longer, I would always prefer to buy a stock that is in oversold territory - and don't always wait for the lines to cross because they can often do so after a decent move has been made in the SP. This is just my way of doing things - many would argue against doing this (and rightly so in most cases!). 5) Fundamentally this remains a very well funded company - plenty of cash in the bank - and no debt concerns. That tells me that it isn't going out of business - making this stock with a market cap (now) of 50m - cheap! It ended the year with 40m of cash and investments! Trouble is its no good having loads of cash if you can't bring your product to market on time! But the cash is certainly a pleasant addition to the mix! To sum up - I thought this would be a reasonable bet. If I'm to be honest I get roughly 50% of my trades wrong. I don't mind admitting that - because I still make money overall. Hope t
.....again. Is this due a tick up any minute?
Is this going to bounce like it did in Dec 08??? And Nov 08? On both occasions the SP jumped back to over a £1 in a short space of time. Bullish divergence on the MACD recently. And plenty of buys coming in today. 139k buy volume vs. 1680 sell volume. Market makers starting to creep up their bid to reflect their diminished stock levels - spread getting better! Just bought 2 x 5k tranches to test the market. More to come in if this starts showing some more movement. Up 4.3% on the day so far. Fingers crossed eh? LOL! GL Guys
Nice link man! Just what I needed. Chimpchoker: Any chance of both??? Or is that just being greedy? LOL!
Anyone got NAV'z for these ATM?
Now the cake is tasting NICE NICE NICE!
The cake's starting to taste NICE! LOL! Must admit, didn't expect to see it rise like this today! Those bulls must have been throwing a few yeast grenades on the way through enemy lines!
Bulls are controlling the stock ATM - taking snipes at 37.25.....now 37.5 as I type! Nibbling through the resistance lines - obviously this ups the intensity of the game. Attracting more buyers, luring more sellers! Trend followers, and breakout traders just entered the fray.....38.5! Up 6.9% Bring it on!
On a side note - this one is well under the radar of most PI's (for now at least!) - but keep a little eye on IRG. Picked some up @ 64.4p. Good things about to happen me thinks! Not ramping.....so don't blindly take this as a buy (I know you wouldn't anyway)! But with a few things coming together for this company, could see over a £1 very soon. Just keep on radar! Sorry for off topic!
Just took out 37p lets see if any troops are following up to support the mavericks who have poked their heads above the parapet!
36.75 Now. Nibbling away at that resistance line! At this stage we have obviously got some bulls defecting to the 'darkside' (LOL!) after taking some nice profits, people who have held since January at roughly these levels just glad to see almost breakeven - cutting their losses and scarpering off to other shares - and the most important factor in the mix - new bulls looking to take this stock forward, spurred by the prospect of a cheap share and a another possible T/O story. How the cake tastes at the end of the day / this week, will depend very much on the mix! Which ingredient will have the biggest influence I wonder?? LOL
Sorry to take a while to get back to you - I'll have to check this board a little more often now its getting more active again! Well, what a day yesterday turned out to be eh?! CDN up 12.5% on the day, and up 44% from 25p a mere few trading days ago ........nice! Got a funny feeling that maybe a bit of consolidation in order now, before 37p gets taken out, especially after yesterdays candle! I think realistically, some will find it prudent to take profits now at resistance, but the bar of support should also have been raised - offering a platform from which to attack 37p later on. I'l be surprised to see it take out 37p today - but hey, I won't be arguing if it wants to! 1WJM
Hiya mate. Yeah still here - waiting for 37p to get taken out before I budge - I want to see the support line of Jan and Feb 2010 (now resistance) get busted and hold. then I take 5 and re evaluate the situation. I'm not in any rush on this one!
Nice start to the week eh? Up 8.3% atm.
Thanks mate! Be nice to see some positivity coming out of the company now in the second half of this year - we both know how quickly this can rally, under the right conditions! GL too dude.
I think the worry for CDN is more to do with the percieved intentions of Dattels - who disgruntled by his ousting from the board of the company he set up (years ago) - is now looking to weaken CDN to a position in terms of the SP where he can buy it out on the cheap. Looks to me like the board of CDN have shown some real lacklustre negotiation skills in securing a deal with anyone - and have been systematically bullied out of the boardroom. CDN was 60p not so long back. Now their 25p! Fundamentally I still think the company is worth a hell of a lot more. I've traded CDN a few times over the years - and now I'm back in with an average of 30 odd pence. I'm hoping there will be a bit of rise (obviously!) to validate that position sooner rather than later! Lets see what the next few months bring eh? GL
CDN taken a nasty kicking on the market today. Opinions anyone? Or has this board shut up shop. I bought a few at 34, some more at 28......Doh! LOL! What a drip eh? oh well, it will all come good again. I just can't believe how cheap these have got.