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.

Prometic Break Out

Anyone who stops by this blog every now and then will know that one of my more recent trade vehicles has been prometic life sciences (T.PLI).

Don't know a lot about the company to be honest, but its ups and downs were fairly predicable allowing for a number of nice trades, a handful of which I had outlined on here.

Well, it appears that on the back of two good news releases (here  and here ...assuming you consider a drug that is marketed to treat a disease which affects less than 200,000 people good news) to have broken out into new territory; I had expected there to be strong resistance at the 2.10 level, but it did away with that quickly. So, that leaves it at 2.36 and it will be interesting to see where the dust settles. As I look at the chart two possible outcomes come to mind, it either plays off the 2.10 or the 2.00 level, of course I wouldn't put any money (literally) on these predictions.

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.