|Despite recent operational difficulties, is Breakwater worth buying? To answer this question, we must look at a chart. |
|FIGURE 1: BREAKWATER RESOURCES, WEEKLY. The price of the stock moved from a low of Canadian$0.15 in October 2001 to a high of $1.97 in November 2006.|
|Graphic provided by: AdvancedGET.|
|Figure 1 is a weekly chart and shows how the stock price moved from a low of Canadian $0.15 in October 2001 to a high of $1.97 by November 10, 2006, in a series of cup & handle formations — some that failed with the second attempt succeeding. From April 2006, the stock price moved into a flag formation, breaking out in October. This gives us a target of $2.30 (1.70 - 0.33 = 1.37 + 0.93 = 2.30), approximately a 27% return.|
I then look at a daily chart (Figure 2) to fine-tune my entry time and price and note that I received a stochastic relative strength index (RSI) buy on November 20, confirmed by a stochastic RSI swing trader buy on November 21. Both MetaStock formulas are listed below. Both indicators shown are also suggesting a buy signal. My one concern is the volume. This has fallen as the price has risen, a sign that is usually negative. Nevertheless, I would look to accumulate the share on any pullback.
|FIGURE 2: BREAKWATER RESOURCES, DAILY. Both the stochastic RSI and stochastic RSI indicate this stock is worth looking into.|
|Graphic provided by: MetaStock.|
|Stochastic RSI Buy.|
Stc:=( Sum( C - LLV(L,7), 10 ) /
Sum( HHV(H,7) - LLV(L,7), 10) ) * 100;
St>Sty AND Sty
Stochastic RSI Swing Smooth Buy.
pr:=If( HIGH > Ref(HIGH,-1) AND
LOW > Ref(LOW,-1), HIGH, If( HIGH < Ref(HIGH,-1) AND
LOW < Ref(LOW,-1), LOW, PREV));
Cross(fish,(Ref(fish,-1))) AND RST<50
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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