ICA dropped sharply, closing at 0.66 on only 18,700 shares, almost matching the previous low of 0.64 reached just past mid-July this year. If it continues past this level, the next nearest support is at 0.60, then 0.55, reached last year. Question is: WHO is selling? or, just as importantly, WHO is BUYING?? If the bottom reached today is the second one, with the stock going back up tomorrow on good news, technically, the stock will have formed the well-known "double-bottom" so dearly held in high regard by chartists, and will indicate good times ahead! The expected September rally will assist in its upward momentum! However, a dive PAST 0.64, towards the 50's, will not bode well for ICA. Finally, one can also argue, these penny stocks don't chart well anyway!! So the comments I just made may not apply!!
Has anyone checked out Falconbridge's stock chart? Maybe the indicators are THERE! I'll go look and report back here in my next post - just a sec ... (looking at ICA's chart - feeling faint!!)
Ooohh -hhh! Just got back - and it doesn't look good at all. The stock dropped below its $27.20 support level first formed in Sept & Oct. 1996. It then rose to $32.80 this March 97, tested the $27.20 support level in April. It bounced back up to $32 in May, then proceeded to dive past the $27.20 support level to $25.80 in July. It rose past that support level to touch $29.90 earlier this month (August), before heading back down to close today at $26.45!! Not looking good at all! Maybe we're flogging a dead horse here. Anyways, part of this may be the result of their settling a three-week long strike here at Falconbridge, Ontario. The union got a good pension deal, but not much in wage increases, and their 10 and 12-hr. shift schedules to improve productivity wasn't affected. Hard to interpret all of this.
Finally, INCO announced it would be buying back 10 million of its shares, which IS bullish! When Imperial Oil announced it was doing something similar, its stock rose from the mid-$40 range to today's $75 level!!
Anybody want to comment?
Harry K. |
