Sakari – take 2

Evening all,

Not too long ago, I posted a chart of Sakari Resources, AJ1.SI. Then, I identified a bear flag that was confirmed as Sakari continued falling. Liking several other factors on the chart, I told myself to practise what I preach, so I lined up a short entry. With the chart pattern as the key reason for the trade, I placed a stop based on the bear flag. Sakari went even lower and tested previous lows at $1.20. At that time, I was earning a paper profit that would have given me a good risk/reward measure. However, I had a different exit plan. Lo and behold, sellers were done, and buyers came out of the woodwork to push Sakari all the way past $1.50. I was very sore getting stopped out, and this was fueled with a confused and lost feeling with general market direction. (Or rather, the reason for the direction).

Anyways, enough with my trade. The quick run-up means that Sakari is now forming a potential double bottom pattern (two green arrows). All that is left is a decisive breakout above $1.55. Sakari fell almost 5% today, so we still have to wait for a couple of days. Using the high of this year, and the recent low at $1.20, I plotted fibonacci retracements. Price is hovering at the 23.6% level. If Sakari continues to climb higher for whatever the reason, I will be looking at a near-term target at $1.735, and then the $2.00 region.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: