TIPS

Three Mid-Cap Tips
by top chartist Zak Mir of Zaks-TA.com - 6/05/08

 

Intercontinental Hotels (IHG):

Intercontinental is giving us what could be described as a slow burn climb up the floor of an ascending price channel which has been in place since the middle of January. What is interesting at the moment is the way that we have a decent risk / reward buy opportunity against the 2008 support line at 815p – level with the 5 day moving average. The view is that while above the 5 day line on an end of day close stop loss basis the upside here could be as great as the black 200 day moving average at 911p.

 

Wellstream (WSM):

Wellstream is one of the great charting stocks of the moment, something which can be seen from the way the stock has been so obedient to the near term ascending price channel in place since November. The floor of the channel runs through 1,220p, something which suggests that any dips towards this zone should be bought into. There is admittedly strong moving average resistance up to the green 10 day moving average at 1,330p, but an end of day close above this could and should be enough to deliver a top of price channel target as high as 1,500p.

 

 

Best Wishes,

Zak Mir

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