My April 5th blog post highlighted the compelling investment opportunity that was setting up in the Portuguese stock market using the proxy PGAL. At the time of writing price was at prior resistance, just under the red horizontal line, R1 in the chart below. As you can see, after a brief post blog report consolidation, price jumped strongly through resistance on substantial volume and climbed higher to the next logical resistance zone, R2. Like what occurred when PGAL approached R1, hitting R2 caused it to repel backward and consolidate.
The consolidation allowed the bulls to reload and make another attempt at breaking through R2. With volume patterns mirroring the ideal combined with the shallowness of the pullback, the probability is we see PGAL bust right on through resistance and eventually tag the first target, T1 above. A gain of 30% from my April post. If the momentum continues in earnest, T1 won’t be difficult to attain and T2 would be next on the radar and maybe (be careful as my cold medications may be effecting my objectivity J) even a retest of prior highs at $16.5.
For those that took the original signal, congratulations. Hang on as it looks like there is a lot more in store. For those that missed out, a confirmed breakout above R2 offers another compelling (not quite as compelling as R1 was obviously) profit opportunity. As always, before any investment opportunity is taken, a position management plan need be created and adhered to. The good news is that breakouts are as easy as they come. A break back below the original breakout level provides an ideal “get the heck out of dodge” sell signal. Good luck!
