after so long in this game you get to read the same things over and over again. That's because there is always newbies coming into the market. Many dismiss what they don't know or understand as gibberish. In fairness a lot of it is. Wanna be chartists look for reasons as they search for the non existent holy grail.
However you can't simply dismiss all charting theories as nonsense. Charting is mostly (unless you are into Gann or other time and numerology studies) mapping of crowd behaviour. History repeats. Support and resistance come into play. Do gaps close more often than not. Yep. Why? Because people trade to that psychology ? Maybe. People also recognise break away gaps that don't get filled. Is that because the major investors, brokers are buying and see fair value much higher up than where the current price sits? That's what I think. Therefore why do other gaps close? Possibly because the retail traders don't have the funds to move markets like the bigger players do. Perhaps there is some capping and manipulation? Not sure with VEC atm but to suggest it doesn't happen is naive. Autobots are not just characters in a Transformers movie. Anyway, with VEC, the reality is that the bigger end of town don't see the risk vs reward to be substantial enough yet to drive the share price up. Why? Again we can only speculate, capping? maybe, unsure re DRC sovereign risk after election? maybe, waiting for some information such as resource upgrades to see what really is possible in the future? maybe.
One thing for sure the Mining Indaba will provide plenty of interest and insight to what the market believes the future to hold. https://twitter.com/MiningIndaba.
I am happy to wait another month to see whether I believe we have the legs to get to a decent re rate and share price. In the meantime the short traders have the control.
VEC Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
