The opinions expressed are my own, based on technical analysis, and should not be relied upon in making investment decisions, since I am not a licensed investment adviser.
Sigma Pharmaceuticals was reviewed one month ago. I considered that the share-price was no longer in decline, but rather appeared to be forming an head and shoulder pattern signalling a change in trend. Furthermore there was a suggestion of break-out to the upside from a trading range forming the right shoulder.
A bullish signal
This trading week closed yesterday with an emphatic lift higher through resistance at 59 cents. Buyers gapped the share price higher at the open, and continued to bid the price higher to 62.5 cents for a 5% gain.
Although trading yesterday marked a change in market sentiment from the negativity of the past few weeks, this was a large-range day for Sigma exceeding that of most other stocks. Investors and traders will look to see whether the share-price continues to track higher this coming week, and whether the 59 cent resistance level now emerges as support.
If this transpires, the likely target is at about 73 cents as previously suggested.
- Chart review, November 8, 2013, Sigma Pharmaceuticals. Buy signal? (technicality.me)
- Should We Stop Using Fibonacci Retracements? (athrasher.com)
- Does Technical Analysis Work on Small-Cap Stocks? (scambinaryoptions.wordpress.com)