Tuesday, 1 September 2009

Singing to a New TUNA

(Original post can be found in Absolute Traders)

I noticed last week that there were two issues that were moving up out of the blue. The first one was PIP, which we won't talk about. The second, is TUNA.

What I remember from this stock since it's listing is that it has been on the downtrend. Even if its fundamentals are telling you a different story, the price performance is something hard to ignore. Because of that, TUNA has long been relegated to the back of my priority list...until now.

Being a lover of flags, TUNA caught my eye when this has moved for 2 days with a total of 20 centavos. This alone made me sense that a possible pole is in the making. For the next two trading days, it consolidated near 1.78. By this time, I have somehow confirmed that it is doing a flag.

That being the case, I see that the resistance of TUNA is now at 1.78. A break of this at 1.80 can be considered a buy with a target of 1.98. If it turns out to be a wrong move, a cut loss at 1.76 is called for.

But wait! This isn't the only play available in TUNA.

On the longer term, it seems that TUNA is in the midst of a reversal pattern. Whether it is doing a triple bottom or a double bottom, it doesn't matter as both are pointing in the same direction: UP.

If we want to play TUNA for the longer term, we are now looking at the resistance of 1.90. Should this be broken, and I think it will when the target of the flag is about to be reached, volume should come in at 1.92. The new target for this will now be 2.65, giving us a probable 38% return.

So after all other popular issues have already made their move, TUNA is a late bloomer that deserves a second look.

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