We
took profits in Scientific Metals almost at the top, on 17th February, after spotting that an “Evening Star” reversal was probably forming, and that’s what it turned out to be, and it has tumbled in recent days on quite high volume.
You may recall that in addition to expecting it to react back, we were also aiming to buy it back at a better price on a reaction, as the long-term outlook for this stock remains excellent. Looking at the latest 3-month chart above, we can see that the earlier critically overbought condition has now eased significantly, as it closes on a quite strong support level. Ideally the point to buy it back would be as it draws very close to this support, say at C$0.40 - C$0.42, but we recognize that it might not drop that far before it turns up again, so it is in order to start nibbling at it on any further weakness. It is up 2 cents just after the open this morning on light volume so might drop back later.
Scientific Metals
website
Scientific Metals Corp, STM.V, SCTFF on OTC, closed at C$0.49, $0.38 on 24th February 17.
Posted at 9.40 am EST on 27th February 17.