While we could have got out at an even higher level two days later if we had moved fast, we still did well with this, tripling our money in a week, for it did as expected, reacting back hard on good news as speculators booked profits. That included us, although we got out a shade early.
The news when it came out was very good indeed as a favorable Supreme Court judgment affords XEBRA Brands Ltd. (XBRAF) a huge competitive advantage for the next two or three years.
Looking at the latest six-month chart, we can see our entry and exit points and how the stock reacted back hard on the news. But notice how volume dropped right back on this reaction, which has brought it back to a zone of quite strong support above the earlier saucer-like base that preceded the advance.
This volume dieback is bullish so it looks like it will soon start again. Hardly surprising given the positive outlook for the company.
XEBRA is therefore rated an immediate speculative buyback. Keep in mind though that anything can happen with these smaller speculative stocks, so don’t go "betting the farm" on it.
XEBRA Brands Ltd. closed at CA$0.31 on Dec. 8, 2021.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts provided by the author.
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The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
