So Brainchips original re-listing valuation was $101mill opening with a share price of 15.5c on Sep 22, 2015..
Currently BRN has a market valuation of approx $733mill with a share price of 41.5c..
The naysayers who say BRN have failed and is a meme stock are IMO incorrect with their assertions. As if it had failed, one would assume it’s valuation would be nearer to a $50-60mill valuation and a share price of closer to 2-3c only..
Let’s look at the Monthly chart.
A key low around the 37.5c area is important in that a bounce above this would constitute another higher low, or a potential double bottom bounce..
Note also that that represents an already 80%+ retracement from its latest peak. The majority of new leaders out of the Dotcom bubble bar maybe GOOGLE retraced well over 75% from their prior peaks. Therefore this alone suggests that BRNs current pullback in price is not uncommon for a potential new leader.
Any new leadership stock that makes a significant and sustained move usually has an initial 200%-300% move back to its all time highs, followed by an exponential move thereforth.
On a weekly timeframe the key moving average is the 50SMA or WMA.. A strong uptrend will rarely see this breached.. Below is the best example for BRN. Note however this is pre commercialisation and therefore less sustainable in time.
Now onto a daily timeframe the 20EMA is a key indicator. We need to see prices atleast hold above it predominately and for it be angling up as the below charts show.
If we then go back to the current daily chart we can observe that it’s still guesswork as to when BRN will turn around as this 20EMA on the daily timeframe is still firmly heading down.
Therefore it is prudent to wait for the signal, even if you miss the first 20-30% of the move, because if the trend becomes sustainable, you will have plenty of time to jump on for the ride as is shown from the last two run ups in price below.
Then you have secondary entries at 12.5c, 19c, & 31c. The latter is a full 6months after the original move.
I’m simply highlighting the fact that there’s no need to double down here on a losing position, as there is always ample time to take a profitable position off a sustained move is going to occur.
Let’s now assume that the commercialisation sticks over the coming few years.. There’s the possibility of a 2-3 year initial leadership move of well over 1000%. So why bother about trying to pick the bottom. Save your emotional capital.
I hope this helps those that are suffering big losses or wondering when the tide may turn..
Cheers…