Head and Shoulders Forming? Current Chart

[Sdajii]

I first noticed this potentially forming a head and shoulders pattern last week, this morning it had a red/black candle which has now recovered and I'm wondering if it might form the base of a right shoulder on an inclining neckline.

Thoughts?

 

[barney]

Thoughts?

Anything I say should not be used in evidence

But, this is a 5 bagger in 2 months!! That is spectacular in anyone's world so I hope you hold "S"

My take fwiw, (Bearing in mind I know nothing about this kind of Stock. @frugal.rock may help?)

1) Lots of punters now in profit (caution)
2) Due to 1), if it drops it could drop quickly
3) If it breaks back above 25 it could easily run just as quickly to the upside
4) Recent large Volume was up to the 20 cent zone.
4a) Therefore ... Below 20 cents be nimble.
4c) Above 20-21 cents, could be an accumulation zone, and may pay your bills for the next 12 months!

ps You've been trading a long time and should not listen to anything I or anyone says

pps Good luck with it if you hold.

ppps If it meanders for a (semi) extended period on lowish volume, and above 20-21 cents, that would add more weight to 4C above

 

[Sdajii]

Anything I say should not be used in evidence

But, this is a 5 bagger in 2 months!! That is spectacular in anyone's world so I hope you hold "S"

My take fwiw, (Bearing in mind I know nothing about this kind of Stock. @frugal.rock may help?)

1) Lots of punters now in profit (caution)
2) Due to 1), if it drops it could drop quickly
3) If it breaks back above 25 it could easily run just as quickly to the upside
4) Recent large Volume was up to the 20 cent zone.
4a) Therefore ... Below 20 cents be nimble.
4c) Above 20-21 cents, could be an accumulation zone, and may pay your bills for the next 12 months!

ps You've been trading a long time and should not listen to anything I or anyone says

pps Good luck with it if you hold.

ppps If it meanders for a (semi) extended period on lowish volume, and above 20-21 cents, that would add more weight to 4C above

Thanks for your reply, barney!

I hold a bit. I started buying at 8.6c, doubled up at 7.6c (both last month, just before the rocket took off), added a smaller amount in the teens, traded a little in the 20s for marginal profits, sold most of my holding yesterday and used the same money to increase my holdings a little today. I wasn't planning to buy back in today, but when the candle closed up I thought I'd prefer not to miss out.

Technically I think it looks very scary (very similar thoughts to yours), fundamentally I think it looks brilliant. If it does form a H&S pattern I'll still be able to sell out on the right shoulder and increase my holdings dramatically on the right elbow, if not I'm happy to hold (whether right or wrong I expect it has a long way to go over the next year or two, but that's fundamentals, not technicals).

It's a great company IMHO and worth looking at, but for this thread I just wanted an opinion on the technicals, specifically if it looks like a H&S setup.

 

[barney]

It's a great company IMHO and worth looking at,

Just had a closer quick look at the Fundamentals (not my strong suite) ... but they seem to have been kicking some goals the last 2 Quarters.

My philosophy with Specs now days ... If the Fundamentals have potential, the Technicals simply tell you when to buy/accumulate.

Probably a fair bit of water to go under the bridge with this one, but with positive F's, it could prove a good Stock to trade on any retracements. Watchlist for me ... thanks for the heads up

 

[tech/a]

The head and shoulders pattern is found at the time of consolidation and
sideways movement. Im not seeing this here. While the trend has currently
ended I wouldn't say it has moved into a range.
Pre empting patterns is Foley in my view as we tend to see what we want to see.

Here is a little lite reading.

https://www.google.com/search?q=head+and+shoulders+pattern&rlz=1C1GCEA_enAU886AU886&sxsrf=ALeKk00AIakluI7hWQfUtRf0kEWvvkaKeA:1597902382315&tbm=isch&source=iu&ictx=1&fir=gu2PO3zxeckJ7M%2CVtv-J2Vlul12xM%2C%2Fm%2F03whtt4&vet=1&usg=AI4_-kTBrhZKv-owVclF7Y9FeqposnxQ6Q&sa=X&ved=2ahUKEwjqsYifiqnrAhWo7HMBHbzgDtgQ_B0wI3oECAYQAw#imgrc=gu2PO3zxeckJ7M


Some of you may have noticed that one of Peters favorite patterns is the bullish reverse of this (Closely related).

 

[Sdajii]

The head and shoulders pattern is found at the time of consolidation and
sideways movement. Im not seeing this here. While the trend has currently
ended I wouldn't say it has moved into a range.
Pre empting patterns is Foley in my view as we tend to see what we want to see.

Here is a little lite reading.

https://www.google.com/search?q=head+and+shoulders+pattern&rlz=1C1GCEA_enAU886AU886&sxsrf=ALeKk00AIakluI7hWQfUtRf0kEWvvkaKeA:1597902382315&tbm=isch&source=iu&ictx=1&fir=gu2PO3zxeckJ7M%2CVtv-J2Vlul12xM%2C%2Fm%2F03whtt4&vet=1&usg=AI4_-kTBrhZKv-owVclF7Y9FeqposnxQ6Q&sa=X&ved=2ahUKEwjqsYifiqnrAhWo7HMBHbzgDtgQ_B0wI3oECAYQAw#imgrc=gu2PO3zxeckJ7M


Some of you may have noticed that one of Peters favorite patterns is the bullish reverse of this (Closely related).

Thanks, Mr. Duck! As I said, I wasn't sure if it was setting up for/looking likely to develop into a H&S, and it definitely didn't look like it had confirmed, but I wondered if it was looking like it might. Sounds like you're saying it's not really looking likely?

Thanks for your feedback, much appreciated.

 

[Sdajii]

Just had a closer quick look at the Fundamentals (not my strong suite) ... but they seem to have been kicking some goals the last 2 Quarters.

My philosophy with Specs now days ... If the Fundamentals have potential, the Technicals simply tell you when to buy/accumulate.

Probably a fair bit of water to go under the bridge with this one, but with positive F's, it could prove a good Stock to trade on any retracements. Watchlist for me ... thanks for the heads up

If you'd like to discuss the fundamentals, feel free to join in the TNT thread. I'm watching TNT fairly closely and would be happy to add my 2c and even happier to hear anyone else's.

 

[frugal.rock]

Dunno Barney.
IT outsourcing kinda deal.
A growing trend prior to covid, now even more popular as many office workers are from home. A trend set to continue.
The cyber security side of things are playing catch-up to this scenario, catch-up at warp speed is required.
This is why AR9 & WHK are also experiencing some love.
The love is waning this week and tomorrow is Friday. Another catalyst is needed to reverse the immediate daily trend, or as suggested, settling into a support range. IMO.
Howzat B ?

 

[Sdajii]

Dunno Barney.
IT outsourcing kinda deal.
A growing trend prior to covid, now even more popular as many office workers are from home. A trend set to continue.
The cyber security side of things are playing catch-up to this scenario, catch-up at warp speed is required.
This is why AR9 & WHK are also experiencing some love.
The love is waning this week and tomorrow is Friday. Another catalyst is needed to reverse the immediate daily trend, or as suggested, settling into a support range. IMO.
Howzat B ?

This would be better in the TNT thread as it's off topic here, but I bought in last month when I accidentally stumbled across it, and all the pieces really seemed in place. As an industry, cybersecurity seemed like something obviously worth a look; it's obviously something which is on an upwards trend as computers/IT is only becoming an ever-increasingly large part of our lives. The Wuhan virus has put so much more internet use into our lives all of a sudden with people either working from home/remotely, or out of work and online all day, plus more online shopping rather than going to physical shops, etc etc etc. A lot of this will be permanent. We also have a deteriorating political situation, with international tensions rising and the threats of cyberattacks being larger than ever and ever-increasing.

TNT specifically was looking like emerging as the biggest fish in the Australian cybersecurity pond, and that seemed like a good thing to jump on given the likely sector growth, and it hadn't yet taken off. My timing was brilliant with a triple bagger coming my way within the next 2-3 weeks (since pulled back but still well over a double bagger for me). On a P/E basis TNT looks extremely cheap, and has indicated two more significant acquisitions coming (it indicated three and has already announced one of them, which triggered one of the big jumps). We should be added to the tech index on the next rebalance which should bring insto buying and more exposure. Plus all the government funding being thrown at cybersecurity this year, it seemed crazy that it hadn't already raced up when I bought in around 8c. I still think it has a long way to go, but regardless of the fundamentals, any rally is at risk of a pullback if it gets ahead of itself. I'm very confident there will be another good entry point coming up, whether that's if it takes a tumble or if it sets up for another breakout. As a fundamental investment I think it's good anywhere near the current price.

Haha, I really should have just said I'd post this in the TNT thread and told you to look there!

 

[frugal.rock]

Copy paste it over there as well.

 

[Sdajii]

Actually, I'll cut and past it there. Please don't respond here, I'll link to that thread here:

https://www.aussiestockforums.com/threads/tnt-tesserent-limited.30739/page-2