The ideal thing to do as an investor is to turn up after a stock’s price has been slashed by a long downtrend and then completed an important basing pattern, and buy it right before it breaks out. That is precisely what we did with this
, and it may have been your buying that caused the breakout.
On the latest 7-month chart for Jericho we can see that our suspicion that a Cup & Handle base was completing has been vindicated, for right after we bought it, it broke out on good volume, and has since zig-zagged around, dropping back to test what is now support at the upper boundary of the base pattern twice. Volume since prior to the breakout has been mostly upside volume that has driven both volume indicators shown strongly higher, which is a clear sign that an important new bullmarket has just started in this stock.
Ideally, we should have jumped at it again when it dropped back to touch the top of the earlier base pattern at the 20 cent level, but it is still at a good price at C$0.23, having bounced off the top of the base several days back.
We therefore stay long and the positive price / volume action following the breakout means that it is in order to add to positions here. Please refer back to the 14th December article on Jericho to see the important and interesting long-term charts. Also worth noting is that price / volume action in the US traded stock since breakout looks very positive.
Jericho Oil website
Jericho Oil Corp. JCO.V. JROOF on OTC, closed at C$0.23, $0.184 on 5th January 21.
Posted at 9.18 am EST on 5th January 21.