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A 4.8% return, protect your gains

Posted: 03/30/2013 - 12:16 pm

On March 26, we said that our trade on Saudi Jarir Marketing (4190) started to pay off after having stalled for some time. Our advice was to hold on to the positions we recommended buying on February 4 in anticipation of further gains. We also suggested removing the pr-determined exit target of 162 in anticipation of a wider rally (read: It’s started to pay off).

Indeed, the stock has witnessed a sharp rally since then pushing the gains on our trade to 4.8%. As evidenced by the chart, the stock is currently testing the resistance (the exit target we removed) at the January high near 162 but judging from the price action, an upside break seems fairly probable.

With more upside in sight, we advise riding the wave up while protecting the gains by placing a new protective stop at 161.

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