Fortress Paper taking a breather

Jan 10th, 2011 – 1 Comment

The last three candlesticks also suggest that investors are confident and are buying when FTP pulls back.


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A company is trading in Canada, Toronto I guess, and I can find nothing. They provide material for manufacturers of “RAYON” cloth. What can you tell me?

Thanks,

Andy

Thanks Andy,

I think the company that you are asking about is Fortress Paper Ltd. (FTP TSX). I last posted a response regarding the company on September 01, 2010. Mario wanted to know if it would reach $40.00 from the $30.00 price point it was trading at on that day. The stock was overbought at that point and it looked like it was going to pull back. But it didn’t. The buying kept piling in for the next 60 days taking the stock to its recent high of $48.99.

Clearly FTP has enjoyed a great advance. Lets consult the charts to see what they are indicating as we proceed further into 2011.

The three year chart depicts the sweet advance FTP has enjoyed from the April 2009 lows. In the summer of 2010 it took a breather meeting resistance at $25. The move through $25.00 has run  all the way to $48.99 and now appears to be meeting resistance at $48.00 The uptrend line is in place, and there is support along the 50 day moving average which are both good signals that the advance can continue.

The six month chart illustrates the support on the 50 day moving average and the resistance at $48.00. The MACD and RSI are both indicating a move higher. The last three candlesticks also suggest that investors are confident and are buying when FTP pulls back.

The next flex point for FTP is February 15, 2011 when it is scheduled to report Q4 results. Analyst expect the company to earn $0.14 a share which is a drop from Q4 2009 but that looks like its already baked into the current price. 

Happy Capitalism!

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