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A partial return of 33% in 6 weeks

Posted: 12/19/2013 - 12:30 pm

On November 5, we highlighted the pick-up in buying interest in Petro Rabigh (2380) and we said that the action was bullish despite the resistance line that stood at 16.50.

The fact that the buying interest kicked in right around the resistance was evidence that the stock was in bullish mode. Our advice was to initiate positions at 16.45 with an initial target of 17.50 (read: Trading the action).

As expected, the stock broke above 16.50 and surpassed our target to hit 18.00 on December 11. From thereon, the stock went limit up on for two days on company specific news.

Though we can hardly claim that two limit-up days were expected, the action we saw in early November provided the trigger we needed to take on exposure to the stock.

Having taken partial profits at our initial target of 17.50, wit would now make sense to close the remaining positions for a gain of 33%.

Please note that we remain bullish on the stock but we are looking for the recent volatility to provide us with a pull-back that we can take advantage of.

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