PFC The Beginning Of A New Uptrend
This could be the start of a new Uptrend.
Price action is looking constructive with a more clearly defined trend channel.
Potential breakaway gap, if not closed is a bullish development.
Previous areas of support & resistance above shown by dashed red lines.
If price can break and hold above 45.00p that would offer additional support.
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Its recommended that you confer with an independent financial advisor who can assess the risks for your own financial situation. This is important as trading can result in the complete loss of your capital. If trading on margin losses can exceed your original deposit.
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Past trading performance is not an indication or guarantee of future results.
PFC trade ideas
Is Petrofac finally putting in its low? PFCPetrofac, a global oilfield services provider, has recently faced challenges reflected in its balance sheet problems, causing a significant decline in its share price.
However, for savvy investors, this downturn may present a compelling risk-to-reward entry point. The company's strategic moves to address its financial issues and reposition itself in the market could be indicative of a potential turnaround. Investors may see this as an opportune moment to capitalize, anticipating a rebound as the company implements corrective measures and adapts to industry dynamics.
Its price to sales is extremely low at 0.04
Its expanding its work force to deal with its strong order book.
The price has bounced and appears to be turning at the 62% retrace.
Trendchanges and its author are not registered financial advisors. Everything that is documented by Trendchanges and its author within the news letter or online should be interpreted as market commentary and not as investment advise or instructions to buy or sell any financial asset.
Trading and investing carries risk and you should fully understand the risks involved.
Its recommended that you confer with an independent financial advisor who can assess the risks for your own financial situation. This is important as trading can result in the complete loss of your capital. If trading on margin losses can exceed your original deposit.
Trendchanges and its author will not accept any liability for any losses resulting from the use of the material presented if readers do decide to take action as a result of information communicated in the newsletter or online.
Although every effort is made to insure the accuracy of the information contained within this publication, Trendchanges and its author does not guarantee the accuracy of the information, either from the content within or from any external third part links which my be used.
Past trading performance is not an indication or guarantee of future results.
PETROFAC Limited - Bullish divergenceA 92% correction from July 2012 (ouch) creating a considerable oversold condition (as if it was not already obvious) there now exists an ‘incredible buy opportunity’ for those brave enough.
Why Bullish?
1) The bears are exhausted - this is indicated by the ‘capitulation’ volume candles. Remember, ‘Extremes in a market is marked by extremes in volume’.
2) Regular bullish divergence between price action and the oscillators is clearly visible on the above 10-day chart.
3) Volume increase + point (2) = very bullish.
4) The most bullish signal of all appears on the 2-month chart below, a Dragonfly DOJI. Those candles are not to be ignored. The further up the time scale the more powerful the signal. Weekly DOJI’s are great, monthly better. 2-month candles are on another level.
2-month chart
Petrofac Not Looking Good... Yet.Despite being one of the stocks many value Hedge Fund managers claim to have into their portfolio (Cobas Asset Management, Azvalor, First Eagle, Toscafund, Templeton Global etc), it seems the share price has not reached the maturity cycle to attract the bulls... yet. I like the company, but I do not think it is the right time to develop long trading strategies, but the contrary. The loss of the £400.00 will open a highway to new lows.
Good luck fellow traders