Logica- Any thoughts?

mully

Established member
967 3
This share has had a dreadful time, with the latest being the Merrill Lynch (i think) downgrade last Monday.

However, the shares could be in for a bounce/worth watching.

Why?

The shares had a good run, along with the general market between December-February rising from 240p to 337p.However, since then they have fallen off the proverbial cliff to 180p


This is a interesting level as it equals 1.618* the dec-Feb run (97p*1.62%)

Just heard that UBS has raised their ecommendation to HOLD from SELL.
 

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china white

Established member
979 12
LOG and RR

price action since May 18th or so looks continuation pattern to me on the way down.

I know it's a Logica thread and I apologise for posting my idea here, I also apologise for the poor quality of my Yahoo chart - I have no access to UK stocks proper charts from where I am. But out of all the stocks I like and trade the most promising IMO at the moment is good old Rolls-Royce. Look at the price action. 220 clearly seems to have been res/sup resolved, especially given Tuesday intraday bounce off 220.25. Volume study (well its poor yahoo version :) ) also suggests that even tho bears had days and days to bring the issue down, it did not happen (cup-type bottom on decreasing volume). What I want to see here is a maribozu up on volume spike, followed by continuation pattern (up) on increasing volume - which wud show that shorts r massively covering.

Obviously another possibility here is an Eve and Adam's Bottom where u'll get a sharp hammer-like dip on a volume spike (shorts taking the dip as the last opportunity to cover in the money, with genuine longs coming in). Eigher way, long from here with a natural stop loss below 210 is IMO a very good call here.

personally working long 220.50 here. Given the strong close on Wall Street, fully prepared to just lift the offer - depending on action Wednesday morning.
 

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Quercus

Well-known member
399 7
Mully
Having had my fingers burned of late trying to catch the falling knife on a few Aussie Biotech stocks, a phrase from Reminiscences comes to mind.
"The price is never so low that it can't go lower, or indeed so high that it can't go higher"
Or words to that effect! ;)
Cheers
Quercus
 

china white

Established member
979 12
Q remember mate - it is not buy low sell high, but buy higher sell even higher rather :)
 
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