When a reader asked if I might be nibbling at Vard Holdings, I took one look at the charts and said I would need dentures made of titanium before I dare think about it. See comment: here.
If we look at the weekly chart, we will gain insight into why share price hit 63c before rebounding. That is where we find the 150% Fibo, a relatively strong golden ratio. With share price closing above the 138.2% Fibo, we might see immediate support forming at 67c.
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Vard Holdings: Weekly chart. |
However, with such a high volume sell down today, there could be a follow through and, in such an instance, the question to ask is whether we might see the 161.8% Fibo tested and that is, approximately, at 59c.
Weekly momentum oscillators, and I am looking at the CMF and the MACD, are not supportive of a reversal. With lower lows looking set to form, unless there is a dramatic reversal with higher volumes on buy ups in the next two sessions, we could see a lower share price in due course. Any near term rebound in share price would probably be selling opportunities for both stale bulls and short sellers.
There are many types of mushrooms in the woods. This mushroom, I am not able to tell with confidence if it is edible or not. So, I am not nibbling.
When in doubt, I stay out. I have a delicate stomach.
Related post:
Vard Holdings: Initiating coverage.