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Which One Shows Positive Momentum, Pacific Andes Or China Fishery?
Trend Spotting | 17 December 2010
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By: Xavier Lim
Articles (51) Profile

Pacific Andes Resources Development (PARD)’s share price has risen slightly by only 1.5% as at 14 Dec-10, since the announcement of the acquisition of a 19.76%-stake (28.9m shares) in Australia-listed Tassal Group. This was probably due to the acquired stake being listed as a quoted equity, which will not be contributing to PARD’s overall earnings. Nevertheless, based on the technical chart, PARD is still in the uptrend channel. The share has been ‘following the rules’ to move gradually up the trend channel with zig-zag momentum.

Moreover, the positive technical picture is supported by the 10-day and 30-day moving averages that have turned into a bullish crossover. In addition, the RSI indicator is trending up above the 50 level, another signal that the overall positive momentum remains intact.

Immediate resistance lies around $0.36 and $0.37. This is where the share has gapped down at the beginning of May-10. Therefore, it is important for the share to move through this psychological price range in order to continue its upward movement. Immediate support at around $0.32.

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1-year chart for PARD
1-year chart for PARD

On the other hand, China Fishery Group (CFG)’s technical picture based on the chart has shown that a symmetrical triangle has taken shape. Symmetrical triangles provide little, if any indication as to which direction the stock will ultimately break out. Hence, we should not anticipate the direction of the movement, but rather wait for a breakout to happen. Both the 10-day and 30-day moving averages and the RSI indicator provide no direction of where the share is going. Immediate resistance for CFG lies around $2.30 and immediate support at around $2.00.

View Full-sized Image
1-year chart for CFG
1-year chart for CFG

Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

Please click here for more information about this author.

Pacific Andes Resources Devt  -- -- --   
Business: Engages in industrial fishing & supply chain mgt of frozen seafood pdts. [FY14 Turnover] Fishery and fish supply (60.6%), frozen fish SCM (39.4%).

Insight: Mar-15, Co's 1Q15 revenue reported a 25.3% drop, w... Read More
China Fishery Group  -- -- --   
Business: An integrated industrial fishing co managing fishing vessels, sells marine catch & produces fish products. [FY14 Turnover] Peruvian fishmeal (68.9%), contract supply (24.4%), china fishery fleet (6.7%).

Insight: Oct-15, Co announced that in line with its assessm... Read More

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