ERG has flatlined...some TA studies

[ghotib]

Re: ERG has flatlined...

Poor ERG, looks like it's back to downtrend or at best the current base consolidation pattern. I prematurely thought it had completed the base. Looks like there are a few more stages of it to go yet. This is one to be cautious about, maybe short term trades in it but long term picture is a different story.

Thanking you in advance for your extreme patience, what is a base consolidation pattern? I've noticed on several stocks that you like using triangles and I'm guessing you're talking about the bases of triangles? Or in this case THE base of A triangle? Only I don't see triangles on any of the charts I've tried for this one so maybe it's something else??

Point me in the direction of an appropriate book or website if you like. I'm happy to do my own reading, but this time I don't know what to read.

Ghoti

 

[RichKid]

Re: ERG has flatlined...

Thanking you in advance for your extreme patience, what is a base consolidation pattern? I've noticed on several stocks that you like using triangles and I'm guessing you're talking about the bases of triangles? Or in this case THE base of A triangle? Only I don't see triangles on any of the charts I've tried for this one so maybe it's something else??

Point me in the direction of an appropriate book or website if you like. I'm happy to do my own reading, but this time I don't know what to read.

Ghoti

Ghoti mate, we're both in the same boat, except maybe I'm half an inch ahead of you in terms of TA knowledge so don't feel shy to ask, we're all learning. Basically you can read 'base' as bottom imho, except that it's hard to pick a bottom and sometimes you get it wrong so it's better to wait till it's completed (the reversal) and then describe the general turnaround area as a 'base' or support area. Conceptually it's like a 'support' for a stool (ie the leg/s or like a hand propping up something, hence prices are supported in an upwards direction. Hence the flattening out of the sp since July 2004 would indicate the price is being supported, the breakout in my previoius mistaken opinion was the completion of that base; events have since suggested otherwise.

I was really intrigued by Regina Meani's charting on bases- see her book (3ed) on Charting (most libraries or bookshops will have it). It's a bit brief but explains a bit about bases (from memory) as do most other TA books. The best place for examples are old copies of Shares mag where she has a regular column, lots of examples with lines showing where the bases have been charted (her commentary is good too). Each chartist has a particular style and she seems to be peroccupied with bases. And yes, 'base' can also be used to refer to the base of a triangle but not for this purpose. I also draw triangles a lot because that's about all I can spot easily at my stage of charting. There is an ascending triangle (top side horizontal at 35c with lower side rising upwards to the right- see if you can find it from my earlier posts).
Hope I haven't messed up the description, maybe TechA or other chartists can elaborate, maybe they disagree as to whether this is a base.

 

[emu2]

Re: ERG has flatlined...

Reason > Company history since founded. False promises!

 

[RichKid]

Re: ERG has flatlined...

Reason > Company history since founded. False promises!

Certanly looks like it as they seemed very positive about the Melbourne contract and got kicked out weeks before the end. The new mgmt is what may give ERG a second chance, all the write ups on ERG that I've seen are negative about track record. It's upto the new CEO to prove his worth or I don't think he'll be around for long. The sp doesn't lie in this case.

 

[tech/a]

Re: ERG has flatlined...

TECH VEIW

 

[RichKid]

Re: ERG has flatlined...

Some bad news on ERG, just saw an article in the current Personal Investor (April?) mag about great stock picks by StockDoctor and they have ERG at the bottom as one to avoid. Their analysis is based on several factors and on almost all counts ERG appears to fail- fundamental financial reasons are what are used in the main. If I'd known about that I'd have booked a quick profit instead of waiting for further gains during the 'false' breakout. I placed too much emphasis on the 'profit' annct.

I expect to go lower as that's where it's been consolidating, maybe even below the lower box indicated by Tech.
Tech, when you say you expect it to range- do you mean between the boxes or in the top box??

 

[hector]

Thought ERG was the perfect triangle - now holding with a stop. Have to wait and see...

 

[reece55]

To be honest Hector, I wondered if anyone was still watching ERG. It has had a stellar 6 months - up more than 300% since August. And WBC have been buying all the way up to about 27 cents, so this one might move further upward for all we know......

It is worrying that one of the subs dumped a whole pile of stock though - however, the reason for the sale was sighted as a change in investment mandates....... HAHAHA.... I reckon they just took their $$$$ off the table.

Certainly one I peek at sometimes.....

Stats for this share are quite incredible - listed long ago in the nineties, has a peak of $28.00 in the tech boom and has raised next to 700 Mil from investors. As far as I know it has never been cash flow or p&l positive. They burn money quicker than VCR! I tell you what, if you want a laugh, have a look at the strike prices of the options issued..... something tells me some of those will go unexercised...... A ship wreck from the tech boom, I always have a laugh when I look the share. The other one to view LOK..... just as spectacular.... But still listed i note......

Cheers
Reece

 

[tt1900]

Is anybody still watching this share? I just start trading last year on August, and currently holding this share at 0.21, any suggestions?

Cheers,

Di

 

[Joe Blow]

Just a reminder to everyone that all general discussion about ERG should go in the ERG thread which is located here: https://www.aussiestockforums.com/forums/showthread.php?t=230