Since we're into offering opinions regarding the value of technical analysis, particularly in regard to "special situation" stocks like VHUB, I'll offer my views this morning:
1. Technical analysis has the benefit of being impartial and objective; therefore, whatever technical analysis may indicate, it will tend to be believed and followed.
2. This often turns technical analysis into a self-fulfilling prophecy.
3. In the case of low-float stocks, technical analysis will tend to be less helpful, because some random sale (e.g. somebody needs the funds right now for whatever reason having nothing to do with the particular stock) or some random purchase can turn the momentum around in a flash. Also, the frequently larger spread between bid and ask prices makes profitable trading more difficult to achieve, creating the scenario of an "imperfect market."
4. It appears possible, if not probable, that the market makers are as familiar with technical analysis as anyone else and can arrange their own trading to create false breakouts in whatever direction they might find helpful to their own cause.
5. In cases such as VHUB where there is an acquisition in process, the swings caused by news or changes in beliefs as to what the transaction-outcome will be will generally be much larger than the swings that technical analysis can bring.
Again, these are just my own impressions regarding the topic at hand, and I've enjoyed reading the opinions that others have previously brought to this forum. Have a great week, everybody!
