My Novice Charting20 Oct 2020 16:05
I see the price is having a wobble, while conversations on this board are centering around another test, which has a (limited) Gov. contract while ours remains pre-production.
On my Daily chart, the trend line I have drawn has 9 bounces upward following a retrace since April 20th.
The price has once bounced just below the 100 day moving average. Now, following a bounce off the 50 day moving average, we recently broke the top-line of the ascending wedge, proceeded to 'break out' out and touched 208, before retracing.
We are now resting back on the upward trend line mentioned above.
Following a break-out, a retrace to the break-out level, c.188, is to be expected.
The recent upwards sentiment - IMHO - has been due to Government announcements regarding mass-testing, which have noticeably firmed up in their detail and become much more concrete in implementation. We know from Avacta that 30,000,000 p/w is a target number for testing, and with increasingly high confidence that Avacta's test is foundational to the moonshot project.
It seems clear to me from company statements and a wealth of available evidence that news is very close now on multiple fronts - from new manufacturing partners to meet the scale, to certification of the BAMS assay, BAMS sales, tech-transfer/pilot batch completion, etc.
For other LTH's, as with a watched kettle which never boils, I think focusing on the daily movements of this share risks obfuscating the complexity of the science being undertaken here and the incredibly short time the company is undertaking it in - the delays to completion of the LFT are comparatively minor and being restituted, IMHO.
On the chart, the price seems to be - and I could be completely wrong - behaving as expected over its long term trend.
So if, like me, you are a fairly novice investor reading this board - which is often full of absolute s'hit - you may want to think about just holding on for the ride.
That's my honest opinion - take it or leave it - but as someone once said: 'the stock market is a mechanism for transferring money from the impatient to the patient'.
Strong buy and hold for me.
GLA / DYOR
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