A CHARTISTS PRICE GUIDE FOR NON-CHARTISTS.

ACC - 6.75p .. viewing its 'all-data' chart, I see that the price 'fell off a cliff', during late 2004, and such a fall is usually due to a major problem with the company, or the company doing something which the market is not very happy about, and checking on the reason for the fall, I see that it was due to a 'major share placing'.



As a general guide .. such sharp falls are usually overdone, which often produces a bounce, which again is usually overdone .. the 'low & the high' produced, will then usually determine the 'basement price range' until such time as the 'problem' has been rectified, at which point the price can then start its road to recovery .. if the 'basement range' is relatively tight, and if the price has spent 12 mths or more within that range, its subsequent recovery can often be quite dramatic, with a very sharp uptrend developing.

Zooming into the sharp fall of ACC, it shows that the price did not see an 'initial bounce', instead its fall was halted by the 10.00p level, which at these low prices, is a very strong 'psychological level', and it succesfully held the price for 3 mths, before its support eventually failed.



Its subsequent fall to 6.00p in May and the following strong bounce to 12.00p, is the type of range from which I would take guidance, and at these low levels, I would extend that slightly to incorporate the 2.50p intervals that I am obsessed with .. so I reckon its basement range 'selling floor' will be at 5.00p, with its 'buying ceiling' at 12.50p .. so overall, if I am right, that is quite a large potential range, which would therefore offer trading opportunities .. however, that is its 'outer limits', and I would expect the price to be more confined than that .. probably rising in 'stages'.

I have already mentioned the strong 10.00p 'psychological' level above, and the 5.00p level below is another strong 'psychological' level. In between is the 7.50p 'mid point', which I believe will also have a strong influence on any price movement.

The 3 mth chart below shows that the price has been restricted throughout, between 5.00p - 7.50p, and I would expect it to remain within this lower range, until it has built up sufficient strength to move up to its next 'stage' .. 'buys' appearing above 7.50p would then be the first signal that it is attempting to make its move, and confirmation would be given once the prices 'closes' above.



I would then expect the price to remain within a range of around 7.50p - 10.00p, until once again it has built up the strength to move on up to the 10.00p - 12.50p 'stage' above.

Once its 'problems' have been rectified and the market is beginning to view it favourably again, the price can then make the strong 12.50p 'basement range' breakout, which could then see the price doubling in a relatively short period .. but this breakout move could be many months away.

Oh dear, I have written a book again .. sorry .. hopefully bits of it will make some sense .. as usual, just a few unbiased thoughts of a non-holder for what they are worth.