4DS chart, page-44

It’s amazing how a little bit of good news can change sentiment very quickly.  Today’s volume is the largest since 16/02 which was the end of the previous SP rise from 3.8c to 9.5c.  And with a chip ready for testing in September hopefully we will see the SP back up to the 9.5c level in the near future.  If the chip technology is successful then we can all start speculating about the SP “takeover”/”ip sell” price which some have suggested would be towards the $4 level.

Anyway, getting back to earth, updated 4DS charts are shown below.  It was nice to see that the positive stochastic divergence that I pointed out in my last chart post played out as expected.  The SP today moved straight through the 50MA, which has provided resistance in the past, and the MMAs are now showing the signs of a tend change to up.  Long Term Momentum is also now moving up.  First resistance level (zone) is in the 5.6c to 5.7c area.  These levels are the current level of the 200MA and the level of the Close of the High Volume anchor zone created by the 03/05 price action.  I see these levels as proving only weak resistance.  The stochastics are now overbought but can stay that way for extended periods of time if a strong trend develops.



For those interested in TA the second chart shown below shows what I am now calling my BFS “Best Friend Setup” (previously “Bottom Fishing Setup”).  I’ve noticed this setup on an increasing number of low cap spec stocks recently.  It uses an indicator called the “WaveTrend” indicator, which is an oscillator that is very good at spotting OB and OS levels. So the 4DS BFS setup was as follows:

- High Volume Close and new anchor zone level on 09/07;
- SP consolidation in range of anchor zone candle;
- WaveTrend cross up from OS (Over Sold) area;
- SP breaks above short term resistance (trend line shown on chart).
- Good (not too high or low) Volume on the breakout;
- Buy at the Open next day (19/07 and 4.3c).

For anyone interested in TA this setup is definitely one to watch out for.



Good luck everyone – and remember to DYOR!