Strat­egy:

Finweek English Edition - - COMPANIES & MARKETS -

Buy on a pull­back to line 2. Dis­cov­ery had moved side­ways for eight months in a broad­en­ing for­ma­tion (lines 1 and 2) be­fore re­cently break­ing out of that pat­tern to the up­side. The price has been mov­ing steadily up over re­cent weeks but is now over­bought, as seen by the sto­chas­tic os­cil­la­tor. The price has typ­i­cally cor­rected/pulled back af­ter be­ing over­bought. There­fore, wait for a pull­back to line 2 at the 3900c level be­fore buy­ing. The up­side tar­get cur­rently be­ing in­di­cated is 4320c – ie, the height of the broad­en­ing for­ma­tion pro­jected up. Place your ini­tial stop-loss as a close be­low line 3 (3795c). Lock in par­tial prof­its on the way up at 4150c to re­duce your over­all risk. Take re­main­ing prof­its at/near the tar­get.

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