PeerTV - A Great Trading Opportunity:

I think PeerTV (PTV) has a lot of potential for a technical trade over the coming few days and below are listed my reasons behind this trade, combined with my personal targets for the trade:


1. Resistance.

- There is very little price resistance in this share until 0.5p (giving a resistance free upside of more than 100% from these levels) and if the small amount of resistance at 0.5p can be broken there's no real resistance until 1p and after this a retest of the May price high at 2.45p looks achievable.


2. Support.

- One real beauty of this share is that the gradual fall in the share price since May provides good rising support for every intrepidly downside retest we see, which will help to preserve upwards momentum in this move.


3. RSI.

- The move through the mid point at 50 on the RSI is a telling buy signals that's often used by Zak Mir and I've had a lot of success in following this particular move, as the indicator seems to give more guidance on the daily charts min the middle of the indicator's range and not at the extreme ends.

- Any downside move I would expect to retest the RSI 50 level and then either make a break to the downside or upside from there, which will provide us with some ideas later on regarding where we place our (imaginary or real) stop orders.

- To clarify my last point, I'm not a fan of using actual stop orders in stocks outside of the SETS system, because I think that market makers intentionally try and trigger them.


4. Slow Stochastics.

- Currently writing a quantitative program that has a lot to do with stochastic indicators, I like to feel I'm reasonably knowledgeable here and in this case, we've been given a great set up from the slow stochastic oscillator, which moved from %K=1.61%, %D=3.54% to where it closed on Friday at K=47.63%, D=27.05%.

- The important thing to note with stochastic is the level of divergence between these two lines, which with that jump was an awful lot and this implies that there is a lot of upwards momentum in this share that's yet to be expressed and only when this begins to fall below 90 after that extreme of the indicator has been reached, will I begin to reanalyse that position's value in the market.


5. Fundamentals.

- I don't know a lot about the fundamentals here, but what I will say is that currently being only valued at around £1.4m, this company has a vast amount of upside potential based upon the value of the contracts it has and the contracts it looks as it if it soon to be signing.

- Fundamental value I find is very useful for ensuring positive sentiment is with you on a trade and at a brief glance there seems to be a lot of it here.


6. Simple Moving Averages.

- I use fibonacci moving averages for my technical trades and again, being an aspect of the quantitative trading that I'm part of, I hope can describe the current situation well:

- The shorter term averages (3, 5, 8 and 13 day averages) all crossed on Thursday, giving a big buy signal, this was then followed by a day of consolidation that we saw on Friday and then the continued move upwards in these averages this morning confirmed another significant move to the upside.


UPDATE:

I closed this position in accordance with my personal risk management strategies (+60%) and then reopened a long position later in the morning after the initial rise to 0.45p and the consolidation around the 0.35p.

In my opinion (not to be used as trading advice), intra-daily, the technical indicators used above currently suggest (as I write this) that a move to 0.45p and above is still on the cards for today (17th November). A break above 0.45p should lead to a quick advance to 0.5p

Continuing in the same spirit as that last paragraph, I sold my second position out at 0.49p.




All the best,

The Masked Stock Trader