Tuesday, July 3, 2007

Golden Proportion Rules. SWC Bottom Soon!

I am going to discuss some technical analysis of SWC chart, although I am not a big technical guy.



First graph. Let me circle out all four bottoms, the one in 2003, the one in 2005, and the one in 2006, and the current one. We see that all four point line on a perfect straight line!!!

More over, if you see the distance between the four bottom points, it looks like a Divine Golden Proportion. Could it really be Golden Proportion rule? I looked up the historic data on SWC. Sure enough it was a Golden Proportion Rule!

First bottom was on Mar. 20, 2003, the little peak between the double bottom. It traded as high as $3.18, Let's count it as $3.15.

Second bottom was on May 16, 2005. Price went as low as $6.05. From First to second bottom is 788 days. Golden Proportion says times 0.618034, which gives 487 days.

Third bottom was on Sep 15, 2006, the little peak between the double bottom. Stock closed at $8.39 that day. That was 489 days after the first bottom.

It looks like we are pretty close to the fourth bottom, but can not say the bottom has already occured. Based on Golden Rule, we take 487 days and further multiply by 0.618034, the result is 301 days. 301 days after Sep. 15, 2006 is July 13, 2007, which is next Friday!

A more amazing feature is the third bottom close price at $8.39, when divided by first bottom price of $3.15, the result is very close to the base of natural logarithm, 2.718. Actually if you use $8.56 to divide, the result is exactly 2.718!!!

Extrapolate the result, the fourth bottom price would be at $10.84. The ratio is $10.84/$3.15 = exp(0.618034)^2. Another Golden Proportion Rule!!!



Thus I predict a bottom on July 13th at $10.84, based on the Devine Golden Proportion Rule.

A nice set of palladium coins I recently received. You know what they are? There are no more than 100 whole sets like this the whole world around!

2 comments:

Pop Cultured said...

nice work...i'll hop on for the ride tomorrow w/ SWC if appealing...

linked...

QUALITY STOCKS UNDER 5 DOLLARS said...

Interesting chart