Charts, etc.10 Oct 2020 14:30
So it's the weekend, bit less noise on here than normal, and you can be controversial without attracting the usual bile & abuse. That's the law, right? Let's have a go anyway.
Re charts and "chartists", I admit I don't understand them. It's like the dark arts to me, people have tried to explain but it's all over my head. However, there are two issues for me re the charts and what they might mean for DDDD. Firstly, they're very often right in their forecasting. It strikes me this is because it's a self-fulfilling prophecy. Enough people believe in the charts that the so-called "smart money" (in other words, big money) doesn't follow a share until the charts align. This can be bad news if it holds a share price back, as I would argue is likely to be the case here. Moreover, even if the SP stays above 80p in the current cycle, it will hang like the sword of Damocles over this share and every time there's a dip, they'll pop out of their little holes in the ground shouting "there's a gap at 80p, there's a gap at 80p!!"
Secondly, and most important here, people have only latched onto the first part of the chartists story - there's a gap at 80p, in other words the SP has to fall back to 80p to fulfil the requirements of the chart. What is being ignored is the second half of what they are saying - When (if...) this drops to 80p, funds will flood in & this will rocket. Now I couldn't care less if this drops to 80p, in fact I might snag a few more if it does (my average is c. 90p so I could average down a little). But if the result of it dropping to 80p satisfies the chartists "laws" and leads to a boom, why not? Unless you're planning to sell any time soon, and I'm not because this is a very exciting play, it's all good.
So, should the worst happen & this reverses to c. 80p next week, or next month, embrace it in the sure & certain knowledge that a BOOM can't be far away - it's the chartists law!! All IMHO of course, DYOR etc. etc. K.
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