Woulfe Mining Corp WFEMF

charts

[Profit79]

I agree that charts are good when investing in longer term (1-2 year and up) investments, but when evaluating smaller stocks like WOF, its an excercise in futility. Most of the indicators and charts are lagging, they are not predictive for this stock at all. News and economic strength will move this. Swing traders are flipping pennies here, which makes the charts useless. Buyout news, financing, strong earnings quarter (once the mine is running), these are all the "indicators" needed for a gradual price increase. Good luck everyone, and happy holidays. Hope we all make a boatload of cash regardless of what analysis method being used.

[mercurysmith]

I find a lot of validity to what you are saying regarding TA and penny stocks.  That said, I would point out the following for your consideration 1.  With penny stocks most day traders do buy the with the anticipation of fundamental news and sell when  the news actually comes out, but a lot of smart day traders are also looking at the TA before buying on the

[Profit79]

40% of 320 or so million shares leaves 60%, roughly 175 million shares outstanding in shorter term penny flipping hands. I do lots of TA for stocks I carry longer term, such as GE and INTC (which for a period had very similar charts and trading patterns), but when 175 million shares are trading on a stock with a market cap of approx $110 milllion, on a daily volume avg of about 500-600k, I say

[Majormac79]

Profit79, We are on the eve of the eve! Its tomorrow or January!

[Segusmundo]

Hi Profit. Thanks for sharing your views on non application of TA to smaller stocks such as Woulfe.  It appears in reaching this conclusion, you place heavy reliance on the amount of Woulfe share float that exists, the number of stockholders you perceive may or may not be swing traders or penny flippers, and the conclusion that technical analysis is functionally limited to only longer term (1

[fattail]

I am throwing my hat in the ring with Profit, way in! There may be short periods when TA vs TA may be playing their game but the vast majority of what drives this stock is 1) deal or no deal 2) Analyst coverage 3) Macro issues 4) the tungsten story and 5) the Buffet factor. A positive or negative in any of these will trump what some chart predicts every time. JMO

[mercurysmith]

Profit and Fattail, the simple solution for you then is just to ignore IT.  However, please don't misunderstand my TA point by suggesting it is being said that TA causes the s/p to swing.  Nobody believes that--the belief is just that it can help predict how the s/p will react, not that it will cause the s/p to react.  Cause (peoples perception of the fundamentals) and effect

[Profit79]

All valid points, but I just want to make sure that some newbie isnt reading these posts, putting faith into charts and hoping that TA will predict future price movements. I think its diligent everyone does the homework, but sadly some people may not. When I was new at trading i remember reading charts, that seemed to establish "clear" support, resistance, and other patterns, only to see

[mercurysmith]

Agreed.

[Segusmundo]

Mercury, thanks for your post clarifying the important distinction between "speculation" of reality (perception) and "reality" (actual news release) as market movers. In this sense, TA simply attempts to chart share price movement, irrespective of cause. In this sense, TA is not a market mover, but a market follower. The TA that is being posted is simply another perspective, an

[ark88]

It's very much appreciated I'm sure by many reading this board the respectfull nature of this discussion that is taking place here. I'm by no means an expert in either TA or Fundemental trading strategy, but I'd like to add something to this discussion based on my observation.   For all the points made about the inappropriate use of TA with a penny stock like WOF, how does one

[Zynfandel]

I personnally really enjoy the TA analyses by Seg. I was even wishing for some time that someone would bring a TA look to Wof charts instead of only discussing the fundamentals (even though we all know their importance).

[Profit79]

Ok guys, yes the "pattern" since september has been in an "uptrend", We dont need TA to tell us that. It kind of concurs with the news releases and anticipation of news. Want to turn TA on its head? I urge all of you to look at a 5 year chart on WOF and tell me what "patterns" you see. TA is an elegant method of trying to understand price movements, and when looked at

[Segusmundo]

Profit, our earlier posts appear to have crossed at the same time, so my earler post could not address the good points you noted, so I will do so here.  Your post raises many valid considerations, especially that some newbee should not get on this site, see TA projections, and assume that TA projections or charts are to be relied upon to accurately predict future price movements. Nothing does