30 day SMA

[sponono]

has come back to the 30 day SMA. this is where I add some more.

[shares]

Hi Sponono So why do you like CFR at this level?

[Russ]

I quote like it too.It has had a controlled pullback (bull flag?) to the rising support line that started on 1 Oct. it is now oversold on the daily chart so there is a reasonable chance of it turning up from here.

[Russ]

quite

[shares]

Hi Russ Sounds like a technical analysis, any other reasons you'd be going long on this?

[Russ]

Nope,I am too lazy to look at fundamentals.

[Russ]

Ditto for NPN which is showing signs of life.

[sponono]

has nothing to do with what the level is: what the share price is the most irrelevant thing in technical analysis but what the share price behaviour is, is most valuable. In this case the share price has found support at the 30 day moving average after hitting an all time high. You can look at the chart of NPN between January and June 2012 to see that every time it found support at the 30 day SMA after hitting an all time high it rallied by abount 10%. Now do please give me your email address sothat I can send you an invoice for the lecture,

[shares]

Apologies for the open ended question. I was trying to avoid a leading question and thus potentially influencing or biasing your answer. Your comment about the SMA pointed to fundamentals as the basis of your stance on CFR. I do appreciate your answer about the behaviour of the price but I was trying to find out if there were also any fundamentals informing your opinion. It seems that there is still not much overlap between technical and fundamental analysis.

[Russ]

still like cfr.

[sponono]

still long eyeing IPL at R200

[sponono]

lekker ding 5% higher is Switzerland

[Russ]

Like cfr even more now!

[Russ]

And it's only just moving up from oversold.

[ndabs]

entered this morning at open...not complaining at all

[sponono]

has just made 5% which is equal to 100% return on my initial margin on IG

[sponono]

no follow through today, I have closed my position. Might re-enter at R68.

[Russ]

I'm staying in.Will buy more if it drops to 68!