Technicals

Since peaking in the first week of the new year, GEV has been in steady decline - not exactly helped by the market shenanigans that transpired in early Feb and caused across-the-board weakness; especially in the smaller end.

I must admit that I'm surprised and a little disappointed that there hasn't been any real follow through buying on what I thought was an excellent announcement yesterday. However, upon looking at the weekly chart, I see that we have a break of downtrend following 7 descending weeks.



I'm not fully convinced yet as I'd like to see better volume characteristics; however, in the announcement it seems as though a follow up report with the Indian counterparty to the deal is imminent and I then suspect that the market will be much wiser about the magnitude of this deal and its implications for GEV.

Suffice to say that I'm a believer and have continued to accumulate at current levels as I feel a rerating is not far away.