Hi
@jfer3 sorry I don't like social media so I don't have twitter or facebook but happy to talk on here.
I was originally solely a TA person and when I 1st started trading about 3 years ago I only used TA. But I found that especially in the spec end of the market FA is just as important so now I use TA (mainly for entry signals) and FA together and I have also found that personally for me longer term investing seems to sit better with me than short term trading. Early on when I was just using TA I found that often I was taken out when my SL was hit with a spike down even though the FA of the company hadn't changed and then immediately afterwards price rose back up with out me so now I tend to exit only after the story (FA) changes as I have learnt that in the spec stocks price can be manipulated very easily. Obviously this approach means that I have to accept a lot of volatility in the SP and it doesn't always work out and I currently hold a number of stocks in the red but it has also allowed me to stay on a few very big winners for which the reward has way out weighed the losses on the others I have held onto for too long. Having said that though sometimes it is best to also just trust your gut at times and cut your losses and move on but that's a decision you need to make based on your personal risk/reward profile.
Looking at the MEI weekly chart at the moment (I use weekly charts for my longer term holds) you can see that after the big fall downwards, which I mainly attribute to the advisors selling off their cheap shares which I personally don't regard as a change in FA, the SP has consolidated between 3.3c and 4c for a while now but then last week it broke down through the support to 3.1c. and to be honest in the next few weeks IMO we could now even see it touch the support at 2.8c before the drilling kicks off. That's just my view looking at the current chart which I agree doesn't look good. However the fact that price has consolidated at that level for a good period of time and also the falling volume (the last few months we have had well below average and continuously falling volume) tends to indicate to me that we are approaching the bottom and I am currently looking out for the spike candle to confirm this. This, also timed with the commencement of the drilling, and with the FA reasons in my previous post, is why I am personally still holding. If the drilling brings volume back to MEI, as I expect it will, a break back above 4c will indicate a new uptrend to me. In a few months time I will find out if holding on was a good or bad decision I guess.
Weekly Chart
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Daily Chart showing the consolidation band more clearly
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