Danakali Share Discussion Threads

[coscos] 22/5/2002 11:45

As I have already said, I have studied charting on many occasions over the years. I agree that the Yanks are more preoccupied with charting than with company fundamentals, but I still believe that with technical analysis, you are slightly BEHIND the curve than ahead of it. That is my opinion.

What worries me with your argument is that on the one hand you point to T.A as the basis for price movement, and on the other hand you keep conjuring up dissapointing figures from the last set of results as the reason for price fall.

If you are using the 'results' argument, then why did dnk close at the 76p level in London on day of results, actually rising by .5p? You didn't call the drop in share price until the following day when the US shares had tanked. This is called being wise after the event.

Therefore, maybe it is better for you to stick only to the T.A arguments as your basis and gain some respect. I acknowledge that a real air of negativity now surrounds this stock.

[smoketrader] 22/5/2002 11:18

Lex - be realistic :)

[lex1000] 22/5/2002 11:18

I was only asking!

[lex1000] 22/5/2002 11:16

forfaiter,

are you willing pre CC to call bottom and at what price you are prepared to buy back?

[easykill] 22/5/2002 11:16

forfaiter

and you are complicated ?

[forfaiter] 22/5/2002 11:15

EK...only with the simple...

[forfaiter] 22/5/2002 11:14

Coscos...thats a shame because DNK is T.A controlled stock I have ever come across...

Why....one because the yanks love T.A...secondly because of its small float so it can be manipulated...and thirdly because it reports 4 times a year...plenty of volatility

Your playing with fire with this share if you don't at least understand T.A.....

[miata] 22/5/2002 11:12

Jimmy, my guess - for I freely admit that is all it is, is that as these are the full year results LL is hoping for significant analyst/press coverage. The quarterly results do not interest the press.

[easykill] 22/5/2002 11:11

forfaiter

patronising is your forte isnt it ?

[forfaiter] 22/5/2002 11:05

EK...you really have a lot to learn....for trading I use T.A for picking early stage recovery plays I use fundamental analysis...

Prices always move for a reason and it is not only down to shorters when a stock goes down 30%......it is now upto the CC to reassure investors...

[357aman] 22/5/2002 11:04

Jimmy,

In my opinion they were waiting for an information regarding a new contract
or someting to up lift the present mood of the market!

[jimmy28] 22/5/2002 10:59

i've been enjoying the debate this morning - BOTH SIDES as a matter of fact.

Anyone care to speculate on why it takes a week for LL to prepare for the conference call?

Last set of results he was out treading the boards on the same day.

[easykill] 22/5/2002 10:46

forfaiter

on the one hand you talk about fundamentals and explain away why the share has dropped. And on the other hand you provide TA reasoning to explain why its dropped. Bemusing to say the least.

[chestnuts] 22/5/2002 10:46

ff people don't mind anybody making money what they don't like people changing their opinion and bad mouthing the stock you might of made your money and good look to you but just stop bad mouthing dnk because when starts to go up you will change sides again and then down again as it will you change sides again then up again you will change sides again and then down so & so that is what gets at every body

[forfaiter] 22/5/2002 10:36

EK...just like the last results right ?....except this time it broke through the 50d ma ....which it has been trading above for the last 6 months....

Thats a big difference....

[forfaiter] 22/5/2002 10:32

Coscos...Yes it did....a break out of 85p would have taken the share to £1.20....

The second failure at the level indicated a double top was on the cards....which was confirmed when the stock broke down through 75/76p level...

Double tops can but not always indicate a change of trend is on the cards so a degree of caution needs to be applied if you suspect one is forming...

The best strategy is to sell your position of the second failure and only buy again if it breaks through that level at a later date on strong volume.You will end up paying more for your stock than you sold it for...but it stops you being caught on the wrong side of the market.....


Of course if you are really confident that a double top is forming then you can also place a short position at the second failure.....but as with all shorts the risks are greater...

[easykill] 22/5/2002 10:25

forfaiter

its simple why its dropped. Profit taking. People bought on rumour and sold on news (and the news was not bad at all). It'll take 1 or 2 weeks for things to settle before a proper trend develops. People who bought lower down rightly took profits.

[coscos] 22/5/2002 10:10

ff, thanks for the reply.

If the chart is more important than what they say, why did you turn negative on the stock when it pushed $5? The chart looked good at the time didn't it?

[forfaiter] 22/5/2002 10:09

EK.....It has already dropped 30% from its recent high....what does that tell you ?

[easykill] 22/5/2002 10:06

"You are focusing on your dislike of me and my position... which is irrelevant ...and means you are bringing emotion into the market place"

no ff, thats farther from the truth. I just question the motives of a person who turn from all positive to all negative in one stroke of a brush.

As I say, instead of pre-judging DNK wait for the CC on thursday.

[forfaiter] 22/5/2002 10:06

Coscos...depends on what they say....and more importantly what the chart says...

[forfaiter] 22/5/2002 10:05

Chestynuts..

Because its paid for from profits and also has a very low average price that will never be reached again...so why worry....

Also I have traded DNK for years and one thing I have learned is always expect the unexpected....so its always nice to have a holding as long as it wasn't bought at the top of the market...

[forfaiter] 22/5/2002 10:01

Coscos...no trading position....