Could I trouble you to look at Clearwater Seafoods once again? I have held it since 2008, originally purchasing them at between $2.50-3.00 so I wouldn’t consider myself a trader. But I am contemplating selling them in the near future, with luck close to its all-time high reached earlier this year.
Congratulations on a great investment and thanks for the assignment. This will be the third time since 2013 that I analyze the charts for Clearwater Seafoods Inc. (CLR TSX). The last time was on June 6, 2014 . The shares were trading for $8.14 and George wanted a second opinion. The investigation outlined that the shares had reached a 52-week high of $9.21 in February of that year and had pulled back to a retest of support along the 200-day moving average. It was advised that CLR had to break above resistance at $8.20,with conviction, if investors could expect a new up leg.
In retrospect that was the right call. By September of 2014 CLR began a new advance taking it to a 52-week high of $15.24 by February of 2015. Another examination of the charts will provide further background to see if you can expect a new high.
The three-year chart holds a number of patterns that are pointing to continued strength for the stock. The uptrend line that started in September of 2014 has been tested but not breached. The shares have also tested but not breached the 50-day moving average. Along the advance the shares have built some support at $13.00 and greater support at 12.00. Given the thinning volume over the last thirty days it would be safe to say that CLR has taken a breather ahead of the May release of Q1 results.
The six-month chart provides a close-up of the break above $12.00 in January of 2015 as the stock made its way to the 52-week high. The MACD and the RSI both generated buy signals ahead of the break above resistance at $12.00. The momentum indicators also flashed a sell signal as the shares hit the highs. At the moment the patterns evident on the charts are neutral at best.
CLR is a hold. There is no cause to shoot this running horse. The stock is taking a breather and may even pullback but there are no indications that we can expect a reversal of the uptrend that started in September of 2014.
Next time I will examine Noranda Income Fund (NIF.UN TSX) for Gord.
Make it a profitable day and happy capitalism!