We’ve been hearing a lot of good news lately on country’s 2nd biggest supermarket operator, Puregold – Acquisition of S&R(Kareila), Acquisition of Parco, inclusion of Puregold on MSCI small cap index effective May 31, 2012.
Aside from fundamentals, PGOLD is also technically attractive to me.
Last 3 trading days:
May 31 – PGOLD bounced from 22, reached 23.90 with significant volume but “force closed” to 22.95.
June 1 – MACD bullish crossover and it closed at its intraday high of 24.50
June 3 – due to market sentiment, price pulled back at 23.60 but volume is not that significant(bullish sign)
A break on 25 will have a target price of 28. Support is at 22 and 100-day simple moving average.