What's happening to AMS?

[#1]

Can anyone explain why this share has lost so much ground in the last week after having such a good run on the 11th Feb. It's currently about to hit support of R674, should I expect it to carry on going down? thanks

[leminus2]

What share has not lost a lot of ground?

[prancing_horse]

In my opinion markets always overreact, both on the up and down side, which gives one the opportunity to short when overheated and buy when oversold.Not all counters deserved to be beaten by the same stick, maybe time to nibble at some.Not going to feast on AMS at these levels, but have taken a little nibble @ 675 on CFD with 3month view.

[THRESHOLD]

Well the fundamental "reason" for the drop is: with oil going through the roof, car sales will drop and, so too the demand for PGM's. Tomorrow's another day though.

[3JN2]

Look at the graph. This share trades up and down in a band for no reason at all. Buy bottom, sell top. Made to order trading share.

[#6]

This is one of my favs, and she is doing exactly what she is supposed to. Making money on the way up and on the way down. Just trade the channels and you will be pretty ok.

[#7]

It was looking bullish on the 11th after having a engulfing white candle and all of the sudden next day drops down like a bomb. RSI now dropping below the 30 level and so is Stochastic. I know it will go back up question is how long it will take and what will be the resistance level to follow. I would say R725 though I read that it was predicted to go above R800 in 2011. Will just have to wait and see.

[3JN2]

My guess is will take 2 to 8 weeks to recover. Bottom 660 Top 730

[StanleyB]

Do not be surprised if it gets stuck below 200SMA again like it did July 2010 - 11 Jan 2011. 200SMA is still dropping and approaching 70500.

[3JN2]

Point taken. Then just trade in the new band say 660 to 700

[Spoegs]

Probably because everybody and his dog trades this as some form of pair/hedge against a whole bunch of other shares. Everbody and his dog uses similar methodology (which apparently is flawed). See this recent paper about the incorrect statistical use/application of Bolinger bands for pairs trading (author uses AGL/BIL).http://www.iassa.co.za/wp-content/uploads/IAJ725-Polakow-final.pdf Quite academic but bottom line is everyone is trading using similar methods which is fine until the ***** hits the fan and it all really falls apart.

[#12]

Some time ago, about three weeks maybe VI and I were talking this and IMP. we said at that stage a trade between 695 and 720/725 was the range but also look for weakness coming to longer support at 656/664 if I remember correctly. Right now the whole market is just in over drive from Libya, todays LSE suspended trading and other short term noises. But the point is we are the critical level of support. this is about the 4th attempt at the support level and indicators don't show anything different. Volumes at most stages of approaching the support lowered so less convincing of a break out to the down side but rather a bounce back to resistance channel. 725/740. Basically a no brainer to accumulate here and move forward. Expect a few more days of weaker price action but a serious drop from these levels? I am not convinced but will keep stops close at hand, just in case. After all the world is unpredictable at all times......Hope it helps out