Technicals | Oct 07 2010
By Rudi Filapek-Vandyck
The TechWizard's attention was caught by junior iron ore company Atlas ((AGO)) this week. Amongst other observations, the Wizard noted Citi analysts initiated coverage on the shares with an above the market price target of $2.90 and Atlas' share price has responded favourably to the news.
The Wizard says Citi's view falls in line with a favourably looking picture on price charts, insofar that the Wizard believes Citi's price target may well prove too timid. His charts are showing the stock is likely on its way to $3.00.
This week's price action has confirmed the bulls are back in control of the stock, says the Wizard. The stock would have to fall below $2.10 on a daily closing basis to negate his positive view.
The Wizard reports he at present does not own shares in Atlas.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au The views expressed above are his, not FNArena's (see our disclaimer).
