RE: Share price drivers22 Jul 2021 10:28
CI,, I don't see 33 on the RSI as oversold, typically it has to be 20 or less, so there is still from a chart perspective, room for it to fall. However the RSI is low, and the SP is on a support .
Deciding when to buy or sell using TA is always, always a judgement, nothing is certain.
A big factor is timescales. For instance if a buyer is looking short term, say a week or less, then they would look for a lot of confirming indicators all to line up at the same time to reduce the odds, in their eyes of an incorrect decision.
If on the other hand you are taking a 9 month view then maybe you will be more flexible and can stand the pain of being "wrong" in terms of a "perfect" entry and make a decision to buy with less confirmation, but happy that you feel it is worth the risk but getting in at a lower level.
My personal view is there are pretty much 2 likely outcomes: Eve will go bust/go into private hands ie the Share holders lose everything, or it becomes profitable. Therefore the downside is 3.5p (from here to zero).
If EVE continue to make progress and turn it around then 10p plus is on the cards. That to me is just about ok as a risk reward ratio, ie 3-1 (The third option is further stagnation but although we say it every time, this situation has to be resolved and EVE are now spending the reserves, so its difficult to see this current state of affairs last much more than 9-12 months. It will either succeed or fail.
The chart for me suggests its worth a 9 month punt understanding that I could lose my entire stake as the downside. DYOR