My analysis this weekend suggests that sometime in the near future we are due a correction in the FTSE.
However, until such time as this becomes clear, I'm still trading in exactly the same way. Tonight I found a stock I'm interested in. The company is called Hunting plc (HTG.L). Hunting are in the Oil and Gas sector. They have had 4 or more years of consistent Net Profit growth (albeit on decreasing t/o). Their Debt/Equit ratio is low and they have recently made 2 strategic acquisitions.
What I really like about this company is the chart. Since the end of April, volume has been exceptionally low (pretty much the same as the whole of the FTSE), however in the last couple of days volume has spiked and the share price has responded accordingly. The company is still in the squeeze (see chart below), however if this squeeze fires, its likely to fire long.
My order details;
Buy Limit @ 463p (Pullback to just above 8EMA)
Stop - 438p (Below recent range - I'm giving this some room, if I'm wrong I'll likely exit before stops is hit)
Target - 496p (Top of channel)
Position size - £8/point. (£8 * 25pts = £200)
Max risk - £200 (1.8% of The AtticFund)
My Buy Limit on Hunting Plc (HTG.L) was filled today and although there is a possibility that this is a pullback, the volume spike of a couple of days ago (which moved the price upwards) has not been supported by further volume increases and price action.
