After a December and January share price correction of the automotive spare parts distributor, there is no sign now. Last week the price started going up and exceeded the previous peak of PLN 214.40, so we can now say that all the loss is made up. During the listing on Tuesday the price per share reached PLN 218.90, new all time high. The second half of the week brought a slight correction, but a friendly one. The long term increasing trend looks just like taken from a book of economics – the market set in the last month a new local low point, went out of it, exceeded previous peak, so according to theory of technical analysis it is now time for another wave of increases. Such scenario is supported by factors – the moving average for last 15 quotations broke from the bottom the 50-quotation one, whereas the 200-quotation one is still heading north. What is the potential range of increases? Looking at September correction, which looked almost the same as the last one, we can have optimistic attitude. Then the price went up by 17.8 per cent after exceeding the previous all time high. Shall the scenario work also this time, the price of IC shares may even go up to PLN 252. The increasing trend will be negated when the price fall below the bottom of last correction, that is PLN 178.

source: Parkiet
17-02-2014

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