HTE

[Nipper]

This share has had massive volume over the last few days - it has just released Bob the Builder in the US, does anyone have any comments on this from a TA perspective.

Thanks

 

[traderx]

Hi Nipper

You are to be congratulated for bringing this share to the notice of members at this early stage before the break out has occured.

The share reached an intra-day high of 510p on 14/1/00. Since that time it has traded in a range, recently forming higher lows on 13/11 (365p), 28/11 (395p) and 21/12(407p).

It has now formed what appears to be a SYMMETRICAL TRIANGLE.

Symmetrical Triangles can be characterized as areas of indecision. A market pauses and future direction is questioned. Typically, the forces of supply and demand at that moment are considered nearly equal. Eventually, this indecision is met with resolve and usually explodes out of this formation (often on heavy volume).

This observation is confirmed by volatility which is low at 16.68, less than 25% of the reading two months ago. This cannot and will not continue. It will break out in one direction or another. The Bollinger Bands are very tight confirming the analysis.

You are absolutely right about the increased volume. Volume spike on 10/1/00 with 2.5m shares traded compared to 25k the previous day. Two more days of heavy volume 674k and 821k then massive spike today 15/1 with 3,207,800 shares traded. Accumulation, On Balance Volume (OBV) and Money Flow (MF) indicators have gone through the roof today. This is a divergence from price action, which did manage a 2.5p rise today. Do not under estimate the importance of this rise.

The price closed higher than its opening today and closed at a high point. I usually take a cautious view but I think this share is bullish and is heading north. However, watch it closely and keep your stop loss tight in case it changes direction. All the signs show that it is breaking to the upside and the price hike could be significant. My view is confirmed to some degree by the 5 day / 10 day Exponentially Smoothed Moving Averages which are converging and all the signs are the 5 day will cross the 10 day to the upside, confirming the price direction.

I do not hold this share. Perhaps somebody will comment on the technical analysis.

This is not financial advice

Tx

[Edited by traderx on 15-01-2001 at 08:19 PM]

 

[sefty]

Chart Patterns

For an easy to use site with clear examples of chart patterns such as discussed in this thread try
http://www.chartpattern.com/chart_patterns.html

 

[Nipper]

Excellent reply! I thank you, I am in on this now - all buys again today, I have spent time in the states and worked with kids over there, I believe Bob the Builder will take off big time especially with all the associated merchandising, my own analysis of the charts, particularly moneyflow and OBV leads me to believe the signs are very encouraging.

Cheers - Matt

 

[cookie]

I was going to post on HTE a couple of days ago but decided to wait for increased activity. It will pay to follow the trend rather than guess and take note of TA comments.

I have made a small profit on this in the past courtesy of positive vibes from Dr Iraj, I wonder if he still likes this one ??

Fundamentals on this company appear absolutely A1 and there seems to be no downside. For any surge we will need some positive newsflow and trading statement as release of 6 months figures to Jan 2001 are some way away.

IMHO a guaranteed medium to long term winner as opposed to a day trade.

Good Luck



Cookie

 

[Nipper]

Front cover of investors week - "Why Hit can't miss with Bob the builder".

Inside double page spread - Talks about the Xmas number one single and video and how Hit is now set to take the characters to the states.

It is mentioned as a possible bid target for Disney and that it has defensive qualities as it will not be affected by a recession. It trades on a high PE but analysts believe this is justified as the company is an excellent long term play having several earnings streams, annual increases in gross margins and will have plenty of positive newsflow.

This is my day off work but I passed this in a newsagents and just had to post it as I am a shareholder. Strong Buy it has to be.

Matt.