Doc,
I'll agree that retrenchment can occur intraday and in fact today we might say we retrenched from $.27, our new base is about $.25.
I've seen technicians argue about this in the past, but it means little, if we move up to $3 to $5 or more it won't matter if we call the base $.20, $.25 or higher retrenchment could be nearly 50% of the peak price.
Of course if on the day of approval the price grew to $10 before moving back to $7 before moving back to $10 it could be considered to have retrenched 30% to $7 and I believe that would be considered the new base. Then if it went to $17 and again down to $14 that too would constitute a 30% retrenchment and our base would be $14. I know technicians can find a way to say all of this is happening according to their rules, and I'll admit they're often right. Some technician would argur that on the day that approval was announced we gapped from say $.30 to say $2.00 that's a gap that must some day be filled. That's where I completely differ, all gaps won't fill.
Gary
Bullish
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