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Blood is running in streets
Covid lows were around the £1.50 to £1.60 mark, I think we could see those levels again. I'd wait patiently and average down slowly.
Now at it's 12 month low. Not wise to average down. 200 day SMA is 306 which is a strong sell signal. I'd wait fro the trends to change before buying.
For those that invest on fundamentals (medium/long term) rather than charts (short term), why delay. I am going to do exactly as Ubik_Fresh says, although not slowly as I suspect that HY will be positive, and neither am I down as I got back in to PFG during Covid-lows. These are excellent buying times, similar to covid-lows but significantly less macro-risk
Simple rule. Sell when the price is below the 200 day SMA, buy when it is above it.
No thanks, by definition you will miss out on lows
Big off-book buy trade today, c.£1m.
I've dipped in further too, but that trade is not me!
Reminder this share is currently trading below the net asset value of the entire company (even excluding intangibles).
H1 TU can't come soon enough.
But you avoid losing a fortune with dogs like this !
OWLS, just take a good look at that simple rule again for us. I think the reason for bigpunt's comment may become clearer to you. :-)
HALIFACTS
"OWLS, just take a good look at that simple rule again for us. I think the reason for bigpunt's comment may become clearer to you. :-)"
No, not any clearer I'm afraid.
By following the 200 day rule you would have bought in April 21 at 238 and sold in March 22 at 317, a nice 36% profit but more importantly you would then have avoided the subsequent painful 40% drop.
OWLS
I said a 'good look at that simple rule', not a fleeting glimpse. Try again. I'm sure this time the penny will drop.
So I just looked it up and found this:
The 200-Day SMA
The 200-day SMA, which covers roughly 40 weeks of trading, is commonly used in stock trading to determine the general market trend. As long as a stock price remains above the 200-day SMA on the daily time frame, the stock is generally considered to be in an overall uptrend. One frequently used alternative to the 200-day SMA is a 255-day moving average that represents the trading for the previous year.
But, to me, this seems dangerous as all it gives you is 'stock price is currently higher than the average over last 40 weeks'. The rest of it looks like 'buy high, sell low'. There must be more to it.
All I can say is that it works in most cases, as in the example quoted.
It is a form of momentum trading, this has stood the test of time.
You don't buy at the bottom but you avoid falling knives.