ATM - A2 Milk Corporation Limited

[aperitif]

Added another ~2600 stores in China too.

[Hoop]

Please help us new bees. What is the first resistance level currently that you see.

Also how do you see and calculate where the resistance levels , gap resistance etc is to know where buy signals are.


Stupidly bought way over our means when the SP was almost at its last peak then just saw our savings wither away to almost 70% gone
Any advice on how to try to recover some back off this is much appreciate.

Thanks heaps in advance.

Hi Maxtrade.
My condolences too...However the action at the time was not stupid..With hindsight and the current $6.31 (down -11c) yes it turned out to be a poor buy in entry point..However with hindsight and a $30 or $40 price tag you wouldn't be thinking stupid would you?
I'm a Chartist and charting often uses the TA Discipline it comes part and parcel with each other as using charts it is easy to see the trading behaviour of people and institutions..So ,,the chart below is the history up to the present of ATM trading behaviour...To chart the price accurately into the future is impossible, but TA can offer odds for or against using the past data and analyzing it with the present behaviour...A change of trading behaviour is nearly always a signal that something is about to change and TA picks up this up..As you can see in the chart ATM is in a severe downtrend and any change of behavour has not lasted..Lack of buying demand (low volume or no increase in volume) shows that minimal optimistic buyers failed to create any decent rally and the change in behaviour quickly fizzled out..
Now at the moment we have another change of trading behaviour and TA charts shows this one looks a little stronger, however it too seems to be fizzling out, but it hasn't yet been confirmed so I'm still watching with interest...

The chart below is very messy but I drew it with you (Maxtrade) in mind. The chart only focuses on the use of S&R lines (support & resistance) and the indicators RSI DMI below reflect the state of price in relation to the S&R lines..

When I drew this chart I noticed that the buying/selling behaviour was very TA friendly..With a high volume trading stock TA tends to be more accurate as trading programs automatically rely on buy and sell trigger points and active traders tend to rely on trading behaviours to actively enter or exit...
Also of interest on the chart is the downtrend behaviour..There is an exit rule "sell when the price drops below the second support level from when you bought in"...It seems this rule is being used and the every second support break sees a flood of sellers causing a gap down.
Chartists have observed over the years that history can repeat itself and the opposite (odds better than random) can also happen...So chartists keep a close eye on gap zones and we tend to get rather exited when the stock price gets close to a gap zone and we think of market physics could play out..For the layman or non chartists think gap zones as air pockets and as the plane enters one it suddenly drops...if there is air pocket around then there is air turbulence in the similar height area further along and so we can expect the plane to hit an updraft and the plane suddenly elevates..
We chartists call this sudden elevation within the gap zone as closing the gap...
As you can see on the ATM chart there are many gaps that can be closed so for that market physics reasoning we chartists keep an eye on the price as it approaches a gap zone..
I'm not saying it will happen now, ATM can fail yet again and as I said in my past post it wouldn't surprise me if the price fell to $6.00..
At the time of the post with price failing after nearly reaching $7.00 that $6.00 figure looked a bit ridiculous but on the chart with the downtrend still operating, unless that trend ends $6.00 and below must happen...This is why I said buying into a downtrend is an idiotic move...TA says wait until that trend breaks and confirmed..

When to sell out and when is it too late to sell out... When I was a newbie (so long ago I had a pet pterodactyl) I was very conservative and waited before I bought in thinking that was the safest time to invest..when actual fact it was the most dangerous of investor strategies..Looking at my record I was buying in near the top and selling out near the bottom...
Even now some 48 years later I still fall in love with a stock and fail to sell out (ignore my TA discipline) and more often than not that has cost me dearly....We never learn!!! there is always some sort of media advice out there that you shouldn't listen to but you do as it says nice things about your pet poodle which helps to reinforce your belief.
The most stressful thing about having shares is failing to sell out (very hard thing to do) and being trapped in a stock. You now face a dilemma with no right or wrong answer..Sell and risk the stock reversing of stay in and risk further loses...With all dilemmas I can't give you any advice what to do...
One thing though being a strict TA discipline investor that TA discipline will never let you get into a dilemma situation. There are other types of investors that use the second support break rule , trailing stops, etc..The one thing that any experienced investor has irrespective of what discipline they use is they all have an exit strategy after they purchase something..
Hope this post helps....

PS Sharetrader won't let post a chart (web glitch) on this post

[Hoop]

With reference to this chart..
A couple of other rules (of thumb)..refrain from buying when the price is near to resistance lines (Don't gamble)
Buy when the price bounces off support lines..Buying when price is near support lines is better (lesser risk) than buying near resistance lines.
Remember a broken resistance line becomes a support line.

ATM 17062021.jpg

[see weed]

Please help us new bees. What is the first resistance level currently that you see.

Also how do you see and calculate where the resistance levels , gap resistance etc is to know where buy signals are.


Stupidly bought way over our means when the SP was almost at its last peak then just saw our savings wither away to almost 70% gone
Any advice on how to try to recover some back off this is much appreciate.

Thanks heaps in advance.

Welcome to the club. If you are a share trader then all your losses and brokerage is tax deductible. If you sell them they are gone. If you wait till they go up again then sell them. Will not be as big a loss.

[aquaman]

Welcome to the club. If you are a share trader then all your losses and brokerage is tax deductible. If you sell them they are gone. If you wait till they go up again then sell them. Will not be as big a loss.

That stars the questions...when are you a trader and when are you not? If you are a trader then you would pay tax when you sell at a profit? Im sure these have been asked many times prior.

[BlackPeter]

That stars the questions...when are you a trader and when are you not? If you are a trader then you would pay tax when you sell at a profit? Im sure these have been asked many times prior.

Here is a bit of discussion on the topic:
https://www.sharetrader.co.nz/showth...ax-perspective

and here as well - newer, but less useful content:
https://www.sharetrader.co.nz/showth...der-v-Investor

Having said that - there might be still better threads around, and as far as I know none of the contributors is a tax expert - i.e. treat these all as unqualified personal opinions, not as tax advise.

Better talk with your tax accountant or the IRD, but whatever you do - lets not start in the ATM thread another discussion about what a trader and what an investor is - shall we?

[Absolute144]

better to spend 10% of your money chasing 100% gains than to spend 100% of your money chasing 10% gains. That said you might like to "double down" if and only if you think the shareprice will recover somewhat.

[Absolute144]

Looks like A2 milk shortsells for 16th june was 199,707 shares.

[Snow Leopard]

....
Any advice on how to try to recover some back off this is much appreciate.

Thanks heaps in advance.

I may be interpreting this incorrectly but anyway let me say this (again).

Some people seem to have this fixation that if they lose money on a particular stock that they must make it back on the very same stock.

This is a VERY BAD mindset for investors or traders, and needs to be overcome.

You possibly learn a lesson from your failed purchase but going forward you look for the best opportunities in the market based on your criteria and that is how you how you successfully make you money back and then some.

[Biscuit]

I may be interpreting this incorrectly but anyway let me say this (again).

Some people seem to have this fixation that if they lose money on a particular stock that they must make it back on the very same stock.

This is a VERY BAD mindset for investors or traders, and needs to be overcome.

You possibly learn a lesson from your failed purchase but going forward you look for the best opportunities in the market based on your criteria and that is how you how you successfully make you money back and then some.

That is the truth. Emotionally I think we feel that if we make the money back on the same stock, somehow that negates the original loss. If we get the money back on the same stock, we didn't really lose money in the first place. To make good decisions we have to stand aside from our emotions. Losing money on a trade means you made a wrong decision, it does not mean you are an idiot. (however, it also doesn't mean that you aren't an idiot).