Having rallied over 175% since IPO in December 2007; natural resources miner based in Kazakhstan; Eurasian Natural, closed today with a gain of 7% after citing significantly increased revenues in the first quarter of 2008, largely due to higher commodity prices. However, with RSI signalling overbought conditions and with a crossover of overbought stochastics, price action in the interim period may be subject to correct. Immediate price target towards the 23.6% Fibonacci retracement level of the impulse wave rally beginning May 2nd.
Example trade: enter short position at current level (1481), close position at 23.6% Fibonacci retracement level (1424). At £10 per point, yields a profit of £570 (1481-1424 * 10, excluding broker fees). Stop-loss: close above 1500 yielding a loss of ~£190 (~1500-1481 * 10).
Long-term: bullish; enter long on weekly close above 1500.
Example trade: enter short position at current level (1481), close position at 23.6% Fibonacci retracement level (1424). At £10 per point, yields a profit of £570 (1481-1424 * 10, excluding broker fees). Stop-loss: close above 1500 yielding a loss of ~£190 (~1500-1481 * 10).
Long-term: bullish; enter long on weekly close above 1500.
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