Home > Market Commentaries > A return of 8.5%, more upside in sight

A return of 8.5%, more upside in sight

Posted: 11/24/2013 - 1:19 pm

On October 21, we expressed our bullish view towards the Saudi Petrochemical sector and one of our picks at the time was SIPCHEM (2310). Our advice was to buy the stock at 26.00 with an open target as we expected a break above the resistance around 26.50 (read: The breakout).

It took a month of sideways trading but the stock did break out as expected. In the last two sessions, we saw SIPCHEM jump on high volume marking a decisive break from the resistance zone and hinting at further upside.

With an 8.5% gain on the trade so far, we argue for further upside and advise traders to hold on to their positions. At this point, a move to 30.00 seems highly probable.

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