Tip of the Month14 Jan 2013 07:50
Should get a good rise today on the back of this ....
Once a month Onefreesharetip.com sends out a weekend spreadbet idea combining technical analysis from Zak Mir and fundamental analysis from Tom Winnifrith – the best of both worlds. This month PIC has been tipped as follows:
Pace Micro: Buy at 205.5p and at up To 210p. Stop Loss 189p Target 260p
The two year daily price chart of Pace Micro is one of the more dramatic within the FTSE 250 Index – even more dramatic than some of the resources plays. This is said on the basis that the extended collapse for the stock for 2011 and much of 2012 with gaps to the downside gave every impression of a market heading for a painful and possibly even terminal destination.
However, the break of former March 95p resistance in June confirmed the turnaround above the key 200 day moving average then at 82p, and it is has been up, up and away almost continuously ever since.
Indeed, what was noticeable for H2 2012 is the way that support for Pace kept coming in at and just below the 50 day moving average currently at 184p, with the implication that while this technical feature is still rising we should be treated to further upside. On a measured move target calculation we should be looking for a second leg of the 100p rally from April to September, with the implication being we shall see another 100p of upside from October’s 160p support zone up to 260p during the next 2-3 months. The stop loss of 189p is derived from the floor of last year’s uptrend channel currently at this level.
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