The problem with using the moving average as your single tool for trading is that it does not account for news. I mean the reason the stock price is in a down trend is because there has been an absence of news. A pretty basic cause and effect right? To make a prediction that the share price may never get passed $1.75 again is saying that they will not have positive news in the future that will justify that valuation. To equate it in any way shape or form to a moving average is just silly and makes no sense. However you are on record now as saying you have sold and will wait for a trend reversal before buying so it absolutely supports your trading position to include this type of statement into your post. It is self-serving right? In other words if you can convince others to sell then the stock will go down harder and you will have an opportunity to buy at a lower price. That may not be your motivation but that is in fact a potential outcome that benefits you and those that would support you on this. And those people who have a lot of money invested and get shaken out or motivated to sell might not be able to get back in if for example a news release of significance is issued after they sell.
What if this companies new CEO actually looks at the 200 day moving average or someone like say Chris Chu or Peter Copetti points to it on the chart and says it is time to update the market even though we are still waiting for that contract to be signed? Just throwing it out there. Or maybe they happen to be in a position to announce a contract? Who knows?
So although you may feel you are providing a valued service here in warning people that the stock could fall further and may never get back up to $1.75 it is self-serving I believe and very narrow in view considering that the share price could be reversed very quickly simply by the company putting out a news release followed by I don't know maybe a webcast. I am sure that many investors and funds would love to hear about this new technology first hand and why these Senior Industry Executives decided to join this junior technology company. Could happen. And it could happen very soon and be motivated by exactly the stock movement that is taking place.
Do you have any stats that overlay such occurrences? Does your TA track company news releases to rationalize the share price behaviour that you are quoting?
Many people here have stated in the past that they would not be in this stock had it not been for Ajit Manocha. That is a very fair statement. But now POET has a powerhouse of senior industry executives that have joined this company and the reasons they have is because they see what the potential of this company is better than any investor ever could. You are going to choose your 200 day moving average over the kind of intelligence there participation provides? I prefer to make decisions based on what I know especially when the share price of a junior company is so intrinsically tied to news that could be released at any time.
