Previously, on 12-Mar-2013, I suggested that THT (Thornotns) was perhaps overbought and due for a pullback, but noted a wonky pennant in late Feb/ early March.
At 58.62p had broken out far above the rising channel I drew. THT is now at 69p. Difficult to believe it’s gone up a whopping 18% in under a week!
With the benefit of hindsight, I shouldn’t have gotten too carried away with the whole channel idea. The pennant turned out to be a more reliable indicator in this instance.
I say “this instance” because THT had exhibited some other pennant-like patterns since June 2012 that subsequently broke down. So anything can happen, I guess.
Personally, during last week, I have made some eye-watering gains across the board. The market appeared to be rewarding risk systemmatically. I’m now wondering as to how likely a retrace is going to be. Over the weekend, Cyrpus announced a tax on depositors. Cyprus has a public holiday tomorrow. It will be “interesting” to see how markets react to this news. Will it just brush it off, or will we go “risk off” tomorrow, as the whole Euro fiasco is pushed to the forefront yet again?
We will definitely get to find out.