Catherine Davey just released her analysis on HCY and this is what she said...
A friend has been nagging me to do a story on this company: Halcyon Group has big mover potential.
Analysis
While there are many penny stocks with long-term basing patterns in the resource sector, there are few left that haven't already confirmed the base and started the run higher. HCY still has potential as opposed to already having half lived up to it. That means it's still a bargain. The attraction of HCY is the fact that the base started in 2002 at 1c. A top at 4.5c was reached in 2003 and was followed by a long-term retest of the downside that finally finished in March last year at 1.1c. Since then HCY has been building a series of higher highs and higher lows including a shorter-term double bottom pattern confirmed at a close above 2.8c in July this year. That was the first opportunity to get bullish but the next big milestone for HCY would be a close above the 4.5c level. That would give a first upside target around 8c.
Outlook
The other element of big mover status for HCY is the fact that this stock was once trading at over $2. Can those levels be reached again? The answer is yes, but even if it makes it to only a quarter of that value, that's a very good outcome for HCY. A close below 2.4c and HCY is likely to retest the 1.1c lows.
HCY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
