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Woulfe Mining Corp WFEMF

Woulfe Mining Corp is a mineral exploration company. It is engaged in the acquisition, exploration and development of mineral properties.


GREY:WFEMF - Post by User

Comment by Segusmundoon Sep 18, 2013 11:29pm
336 Views
Post# 21750362

RE:RE:RE:RE:Am I missing something?

RE:RE:RE:RE:Am I missing something?Hi Chizzles. I don't think you're missing anything. From purely my perspective, I think your expectations of what share prices "ought to be doing" may be the issue.  In technical analysis (TA) "what" (the stock price is) is the important factor, not "why" the price is what it is. Line up ten people and you will get ten different "why" answers about what the stock price "should be."  But, with TA, all of the "why" answers are combined (in cold hard buys and sells during the trading day) and "resolved" at the end of the day with the closing stock price. Suddenly, the "why" isn't so important. The stock price is what it is based upon everyone's "collective" explanation. The question then turns to the more important question of where is the share price going? To try to predict future prices, TA looks to past trading patterns. Right now, WOF appears in a classic trading pattern, a rounding bottom reversal pattern. 

On August 14th, WOF traded for .09 cents a share. Before that, it had traded in a .09 to .10 consolidation pattern since June 13th. That's a long consolidation. However, from August 15th to August 28th the stock doubled to .18 cents.  Presumably news of Dundee's PPO (and renewed show of confidence in the stock) fueled the "why" of this gain. Since August 28th, WOF has been "consolidating" this very short term 100% value increase in a .16 to .18 cent trading range. This "healthy" consolidation allows some of the traders who bought during the .09 to .10 consolidation and later in the .13-.14 consolidation to take their profits off the table, at least for now. It also allows new buyers to come in.  As discussed before, .18 cents is WOF's current "resistance" level. Until WOF has a strong volume close above .18, we will likely continue trading in the .16 to .18 consolidation. Barring important news, this consolidation period provides an orderly transition for buyers and sellers to buy in and sell out. In this process, if and when demand for WOF stock exceeds supply, the price will go up, and break past .18 cents resistance. Conversely, if supply overwhelms demand, the price will retreat and the whole process will begin anew at a different price level. Much beyond that, I don't think you should lose sleep trying to figure out the "why."  It really isn't important. If someone is trying to supress the price, it is part of the process, and will be reflected in the final price. Fundamentally, there is no "new" news to move the stock. The PP's (Dundee and KZ) are old news and already priced into the stock to the tune of a 100% gain.  From here,  I assume knowledgeable investors want more than simply speculation about "what might be happening and when" before they put their cold cash on the table.

Bottomline from a TA perspective: after a long consolidation the stock began a rounding bottom reversal pattern which has been confimed. The stock doubled in a short time. These gains are being consolidated in a healthy .16 to .18 cent trading range, with strong support repeatedly tested at .16 cents. The prospects for future intermediate gains look good from a technical perspective but likely won't resume until .18 cent resistance is broken on strong volume.Before this occurs, the stock may again test .16 support, which would represent a buying opportunity.  If all of this TA is confirmed, and WOF is eventually to move up, then this .16 to .18 trading range will be the third "entry point' provided in this reversal pattern to buy the stock for future gains. Good luck to all longs. Seg.


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