RE:willikersSome random thoughts on a Friday/Month End.
The smack-down continues. Last 4-days drop from .62 to .43. Not fun if you are in at higher numbers. My average is mid-.20's. I see almost 3.1M shares traded on all CDN exchanges at 9:02am.
Welcome to the Venture exchange. Volatility reigns supreme. Big ups, big downs.
Every equity on the Venture has a story. Some better than others, some not so great.
I like the Edgewater story, for all the reasons that have been posted here in previous week/months. The patents alone cost approx. $50M to develop, current mrkt cap is close to the same, again approx. And no premium given to the future.
From my perspective, the Edgewater story gets better every week. If I look back, early March was the beginning of the speculation, starting below .05. May 12th was the big alliance news which pushed the share price from low .20's to low .60's.
You will note the high in March was about .26 and closed at month end at .17.5, April high was .30 and closed at month end at .205, May high was .62 and currently trading at say .44. You can see a pattern starting to develop. Big speculation, big manipulation, big losses, big profits, potential big rewards going forward. Watch for trends. The delta from the beginning of May from the low to the high was huge. Big volume, big profits for those that sold and paper profits for those that held.
If you want to trade it, you always take the chance of missing a big move or you can just book the profits and a profit is never a bad thing. Everyone has their own gameplan. I've not traded it yet, waiting for the "material event" news and a few other big ones in coming months. The material event, who knows when that happens, but is worth the price of admission.
So from a fundamentals perspective, Edgewater is a 10/10 story in my opinion with heaps of volatility. Again, it's a venture play, expect volatility and heaps of manipulation to go with it. YFI is my only venture play, because of the story.
From a technical view, I use 1-day, 2-hr, 1-hr and 15-min charts. The only one that appears to map is my 2-hr chart. And if I had traded it, I would have missed the .30 to .62 move. So, I haven't traded it, just watching, taking the ups and the downs. So far, more ups than downs.
Currently the 2-hr chart is oversold, RSI, MACD, Full Stochastics. So, if you're betting June is going to continue to trend up, then now would be the time to get in. Can it go down further? Sure it can. I never predict price points, it's a mug's game, I don't think anyone can. However, momentum is a different story and the momentum indicators look to be bottoming out nearterm.
For those watching the big sellers this week, they were the same big buyers who took the share price from .20 to .60.
So, lets see what June brings. The venture is mostly news driven and every piece of news from Edgewater has been positive the last 3-months.
Having fun yet?