Saturday, November 8, 2014

PriceSmart (NASDAQ: PSMT): Breakout Buy Signal Targets Double-Digit Run in This Stock

It has been quite an interesting few weeks for market prognosticators, and many bulls and bears alike have been caught off guard. Fortunately, there are mechanical systems available to find stocks that can sink or swim on their own merits.
Recognia, a program that applies sophisticated pattern recognition and quantitative analysis algorithms to stocks, pointed me toward PriceSmart (NASDAQ: PSMT), which runs shopping warehouse clubs in Latin American and the Caribbean.
The stock has been quietly forming a basing pattern on the charts after a disastrous drop earlier this year. And action this week looks to be an upside breakout from that pattern.
PSMT Stock Chart
PSMT peaked in November 2013 above $126 before tumbling below $100 by April. But since May, it has been moving more or less sideways between $81 and $92. Chart watchers consider this to be the healing process as a stock repairs the technical damage that has been done.  (more)

Please share this article

No comments:

Post a Comment