Peregrine Diamonds Ltd. holding on to the tiger’s tail

Dec 3rd, 2010 – Comment

  Hello Lou, Great website ….I really enjoy it. Can you give us your take on Peregrine diamonds (PGD)? Thanks Dean Kenora,On. Hi Dean, I last posted on Peregrine Diamonds Ltd.(PGD TSX) on October 21, 2009 for Betty and at the time I suggested that PGD had a tiger by the tail and that you […]


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Hello Lou,

Great website ….I really enjoy it.
Can you give us your take on Peregrine diamonds (PGD)?

Thanks

Dean
Kenora,On.

Hi Dean,

I last posted on Peregrine Diamonds Ltd.(PGD TSX) on October 21, 2009 for Betty and at the time I suggested that PGD had a tiger by the tail and that you had to expect volatility in the trading of the shares. Back in 2009 there was a move to the upside once the pennant formation was finished but it didn’t result in a sustained trend. The charts will illuminate how best to proceed from here.

The three year chart depicts the pull back to support at $1.50 in November of 2009 and then the  to a higher level of support at $1.75 in July of 2010. From there PGD enjoyed a nice run to its recent high.

The six month chart illustrates the the move to the high of $3.30 in late November of 2010. The MACD generated a buy signal in late July, a sell signal in mid September, a buy signal in late October, and a sell signal in late November.

PGD is currently testing support along the 50 day moving average and its trend line. The news stream was very active for the company starting in July of 2010  and into December as it announced the results of its drilling programs, private placements, and the status of their deal with BHP Billiton.

If the stock catches a bounce off support at $2.60 it will take lots of work to get it through resistance at $3.50. If you are interested in PGD you have to be prepared for the volatility. From where I sit this one still has a tiger by the tail.

Happy Capitalism!

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