Imperial Energy - 2005 Thread with Charts.

Fundermentals are only a very small element that effects the prevailing share price in the short to medium term of any share. Fundermentals are for long term prospects and for trader who have 'long positions'. The market makers (MM's) are the people who have to make money irrespective of what the price is whilst not getting caught short of stock in times of demand or lumbered with a stock pipe while demand is low. The only agenda the MM's have is to make money EVERY DAY. They set the share prices on how they think the buyers/sellers will respond and hopefully stimuate trade. NB. The market makers couldn't care if this stock went to £100 or to 5p as long as folks are buyer & selling all the way.

Over the last few days in very thin trade the MM's seem to do some really scary things and that is simply to test the market, which they can do on quiet days. You may have noticed that the price may jump dramatically at certain times in the week but you can sure as hell seem them pulling the anchor up when trade picks up. Setting the market prices is a very sensitive task and as much as you all have a pop at the MM's about alleged 'manipulation' they are simply trying to motivate dealers into taking action.

When trade is high MM's are more confident and can judge what the general consensus of opinion is on the shares as they have enough trades to judge which way the shares are truely going but don't think that the share price should just follow the trading patterns on that day (i.e, loads of buys equals price rise), you must also consider the positions of the MM's over the previous few days to see the bigger picture.

So, where's thus mut heading? -

The shares haven't followed a predictable pattern over the last 4 weeks. Ideally it would have been better for the shares to touch 470p over the 10 days but it's done exactly what it shouldn't.

No matter what happens over the coming weeks/months don't think that just because the fundermentals are good that the price should go up and stay up at it's NAV price 'cos there's more to it!

It looks like the price is looking for support but in territory where it has not previously seen any!! If the price goes down another 60p-80p in the next 10 weeks without much of a bounce then you won't see £5 again until Spring next year.

At the minute I don't hold any shares but have been watching this issue like a hawk for well over a year and I could either open a position or short it but to be honest it's well and truely in the 'Neutral' position at the moment (I'm looking for 320p or 470p before I make a move, but don't think I'll get either very soon)

Good luck everyone.