Lovisa (LOV) – tactical buy
Lovisa has completed and confirmed a bearish double top pattern in September 2018 and has been trading in a down trend since then. The weekly RSI indicator has reached oversold territory and a bullish divergence between the price and the RSI has formed on the daily chart, suggesting that buying interest is likely to emerge soon.
While at this point there is no sign that the medium term down trend is over, given the oversold and divergent momentum conditions, we see a good probability of the price bouncing in the short term. Therefore, we open a tactical buy at current price levels with an initial upside price target of $7.00.
OceanaGold (OGC) – target reached
In our last update on September 21, 2018 we discussed the likelihood of the price breaking above resistance of $4.23 based on the constructive momentum conditions. A strong rally has unfolded over the past three weeks and our initial upside price target of $4.60 has been exceeded as expected. Wednesday’s price action reached an intra-day high and has pushed the RSI and the MACD indicators into strongly overbought territory.
While at this point there is no sign that the medium term up trend is over, we see the stock as being vulnerable to a short term pull back.
Regis Resources (RRL) – closing our tactical buy
In our last update on September 21, 2018 we discussed the likelihood of the price trading higher in the near term and opened a tactical buy at $4.11. The price traded higher over the past three months and our medium term price target of $4.80 has now been reached and exceeded.
While at this point there is no sign that the medium term up trend is over and the price could extend gains in the months ahead, we note that the RSI and the MACD indicators are in overbought territory, which makes the stock vulnerable to a short term pull back. Therefore, we close our tactical buy.
Atlas Arteria (ALX) – lowering our downside target
In our last update on October 25, 2018 we discussed the bearish implications from the leading RSI indicator breaking below its key support and highlighted that the stock is likely to trade lower in the near term. The stock traded within the boundaries of a bearish descending triangle over the past few months with recent price action breaking below key support and confirming the pattern.
Our initial downside price target of $6.30 has been reached and given the confirmation that a medium term top is now in place we lower our target to $5.70.
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