Strat­egy:

Finweek English Edition - - COMPANIES & MARKETS -

Wait be­fore buy­ing. Group Five – on its long-term monthly chart – has formed a large de­scend­ing tri­an­gle (lines 1 and 2). It needs to break out above line 2 to trig­ger a buy sig­nal for in­vestors. Specif­i­cally, a monthly close (or two con­sec­u­tive weekly closes) above line 2 will be the sig­nal to buy. (Line 2 is at 3600c this month and de­clin­ing at an an­gle of 40c/month hereafter.) Note: If its price drops back to line 1 sup­port (2450c) then start “nib­bling” near there. The monthly sto­chas­tic os­cil­la­tor (on top) is giv­ing a pos­i­tive di­ver­gence: ie, it isn’t mak­ing a new low, which is a bullish sign and an early warn­ing of a good rally to come. When the price even­tu­ally does break out above line 2 it will set up a long-term tar­get to retest (and prob­a­bly ex­ceed) its all-time high of 7380c achieved in 2007. But cur­rently it needs to do more work first.

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