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@Miner Wishing you and your family and friends a safe and happy holiday season. I'm pleased to reply to your questions.
(1) Support level at 0.65. A price level is important if a swing high or swing low (pivot point high/low) forms at a level at least twice. On the weekly/monthly chart of DCG, price made a low at 0.655 (April/16), then again at Dec18. This defines an important level and we call it support because it's below price and price bounced off it twice so far. Last Friday price traded at/below 0.655 once more and closed above. Will longer term investors (instos) buy again at this level? As it happened no because DCG released an update outlining further concerns.
A chart support level is merely a line on a chart that indicates prior support. It didn't stop price falling further today. I never presume that a chart line will hold price, but I am interested to see what happens at that price level.
(2) The root cause for the loss is that not enough people bought DCG after I did. The demand that I saw in the chart, disappeared. Supply offset demand and so price traded sideways on low volume for many months until the recent news.
I sold one day later than I should have, so I'm not happy about that.
(3) Additional supply hit the market today and forced prices well below the support line. Prior support now becomes resistance as there's bound to be lots of unhappy holders that will sell if price gets near 0.65 in the future.
(4) Now that I'm out. I can reassess the situation with a clearer head. Has this gone down too far? I'm unable to form an opinion on this as it's outside my area of expertise. I won't know until I see what happens next. I thought the Sunraysia Solar delay was inconvenient but hardly worth the selloff. However the additional concerns imply that management are not in control of multiple projects. I believe that margins are very thin in the engineering/construction business so it doesn't take much for a project to become a problem.
I did notice that two directors bought shares yesterday. They can buy more now at a lower price.
(1) Support level at 0.65. A price level is important if a swing high or swing low (pivot point high/low) forms at a level at least twice. On the weekly/monthly chart of DCG, price made a low at 0.655 (April/16), then again at Dec18. This defines an important level and we call it support because it's below price and price bounced off it twice so far. Last Friday price traded at/below 0.655 once more and closed above. Will longer term investors (instos) buy again at this level? As it happened no because DCG released an update outlining further concerns.
A chart support level is merely a line on a chart that indicates prior support. It didn't stop price falling further today. I never presume that a chart line will hold price, but I am interested to see what happens at that price level.
(2) The root cause for the loss is that not enough people bought DCG after I did. The demand that I saw in the chart, disappeared. Supply offset demand and so price traded sideways on low volume for many months until the recent news.
I sold one day later than I should have, so I'm not happy about that.
(3) Additional supply hit the market today and forced prices well below the support line. Prior support now becomes resistance as there's bound to be lots of unhappy holders that will sell if price gets near 0.65 in the future.
(4) Now that I'm out. I can reassess the situation with a clearer head. Has this gone down too far? I'm unable to form an opinion on this as it's outside my area of expertise. I won't know until I see what happens next. I thought the Sunraysia Solar delay was inconvenient but hardly worth the selloff. However the additional concerns imply that management are not in control of multiple projects. I believe that margins are very thin in the engineering/construction business so it doesn't take much for a project to become a problem.
I did notice that two directors bought shares yesterday. They can buy more now at a lower price.