This morning from Investorweb's expert chartist, Catherine Davey's. I have her to thank for my first batch of AGS.
Catherine Davey
Western Metals Limited (WMT)
By Catherine Davey, 29 Nov 2006
A request on the Premium Forum prompted today's analysis on Western Metals.
Analysis
A few years ago, when I first started writing about stocks I called big mover, it was just a concept. In the last few months I have seen a number of stocks I have put into this category reach those big mover targets, sometimes going much further than I anticipated. WMT has big mover potential. That potential got closer to reality late last week when it opened at 5.8c and rallied as high as 10c the same day. That's what makes penny stocks so fabulous - the ability to double, triple in a single day, and sometimes go 10 or 20 times in value in a short period of time. WMT has the two main criteria for big mover status. The first and most important is a long-term basing pattern. This formed from the lows of 2002 and was confirmed on November 22nd when the price closed above 5c. The other feature of a big mover stock is much higher prices in the past. My chart for WMT shows prices higher than the $1 mark in 1997. It's hard to imagine WMT going from current levels of 9c to highs of $1.30, but don't doubt it's possible because it's happened before.
Outlook
WMT has rallied quickly and given the significance of the 5c mark, I think it is likely to come back and test that level, possibly getting as low as 3.6c. A retest of the downside is a good thing for the longevity of an uptrend. A close below 2.4c and the outlook is bearish.
Support:- 0.073; 0.062; 0.05
Resistance:- 0.16; 0.335; 0.52; 0.68
end of excerpt.
WMT
western metals limited
