Prometic Life Sciences Update

This was a n ice little flipper for a while before it broke down. It recently went on a bit of a break out and the chart is starting to look interesting again.

I'm going to watch the movement but I suspect that it will bounce along the 1.80-2.00 range, affording some swing opportunities.

 

Most of the biotech stock I had been following/trading have been moving downward without many pullback opportunities in the right direction and the risk was too high. As a result, the blog as suffered from a lack of posting lately as I have felt a general ambivalence to the Canadian markets and what I would consider meager opportunities.

Miners have done a bit better, but with gold hitting resistance at ~1170/oz I believe most companies still are only able to offer thin margins at best, and the good ones running at around 600/oz all in costs are still getting dragged down with the rest. 

I have a number of companies I have been meaning to spotlight ones I think are a bargain deal for those who believe the sector is at, or somewhere near to bottom.

Checking in on ProMetic

Back in February (this post) I outlined what I saw to be a break out in Prometic Life Sciences. It did, breaking well clear of its 2.10 mark. It made some bounces off of $2.40 and is currently flirting with the line.

So, like any TA post, I'm going to draw some lines on a graph and make predictions. I think it will go up a little, then come down again to the $2.40 zone, and perhaps do it a few more times. Likely good for a few swings.

T.PLI Once Again

Going to get into this upon Monday morning, depending what happens of course. I think it could be prepared for another 15-20 cent run here, hoping I can play it off the 1.85 line a few more times.

Fairly simple chart, although I am drawn to the large amount of volume that occured on November 18th, where 30 mill shares were traded, inter-day trading from 2.06-2.21. Investor psychology can be very stubborn in regards to "getting out even" (actually I recall Edwards and Mcgees book having a good section on investor psychology and its role in creating resistance/support lines). I have a feeling that any advance will get held up there.

Trading Prometic (T.PLC)

I've been watching Prometic for a while, trying to get a feel for it. It seems to be on an intermediate uptrend. The Bollinger Bands contracted before the last move towards the intermediate line of resistance, which it tested before bouncing off.

Notice how at 1.70 the price moved up to the diagonal resistance line, bounced off it and came below its 20 day moving average before going above it again and repeating the same process. It has done this twice now, and has tested resistance 3 times.

Here we will see if it breaks the line, as the third time is generally considered the charm, or if it goes back down below its 20DMA to again test the diagonal support line before moving up. It does seem to be in a trend, making higher highs as well as higher lows in this trend which has lasted a bit under a month.

The TSI does indicate that it is running out of steam, and its exit of the BB and subsequent lower close does ssuggest it will retest the support level again before breaking out of its trend. Either way, I cannot tell and will have to wait for confirmation. If it breaks the resistance line by an amount equivalent to 3% or more of the stocks price, and opens higher on the following trading day after that break, I will see it as a strong up movement and would go long. If it goes back down and resumes this intermediate trend I would assume it to be doing just that and play it as such.

One last item to consider is that the stock is testing is year-to-date high as well. As can be seen, it failed in its first attempt to go higher, closing lower the following day, albeit with a very small candle body (and no higher than opening price). Either way, whether it goes through a small down movement or goes to new highs right away, I see a long opportunity here (the stock has been in an uptrend for the last couple of years so, either way...not a hard call).

Anyhow, here is that chart.

 

EDIT:

Was helped by a bit of news, but today it has seen a good break through. Very good Long opportunity in my opinion (please read disclaimer at bottom of blog)