The daily chart above displays the price action of emerging health-care stock Admedus, a stock I have frequently reviewed over the past 5 years on this blog.
It has promised much, but the share-price has gone nowhere in that time, being 2.2 c/s when I first took a position, and 24 cents this week, (after a 10 for 1 consolidation some time ago).
The management has been diligent in researching and promoting several new products for use in cardio-vascular surgery with enormous potential, but to date the market has failed to factor this into the share-price.
In the absence of upwards trending, I have with other shareholders, resorted to range trading, looking for gains of 10-20% on the parcels I have sold.
The chart above shows how the RSI for me has been a reliable confirming indicator, in combination with noting the inflection points of the price action.
It is tempting to speculate as to how far the share-price might rise, and to delay selling believing that there are greater gains soon to be had. However with such speculative shares I have rarely regretted selling when there is profit to be had for the taking.
I wish in conclusion to remind readers that they should not rely on technical analysis alone, but rather seek qualified advice from their stock-broker or financial advisor.
Categories: Chart Analyses