Petra Diamonds PDL

From this weeks shares tips
perfect short from backtest zone. Cant get more accurate than that.


dl.dropboxusercontent.com/u/4899609/pdl4thsept2014.png

This could be interesting. The daily chart shows a possible head and shoulder forming, but it is close good support at present: rising trend line. 100 moving ave and strong support on the weekly chart.

The chart also shows some indecision on the most recent trading day. If the current level fails I can see a move down to 167 / 170 which would fill a gap. There is also good support at this level and to me looks like the bottom of the head and shoulders. Whichever way it is worth watching as it could bounce off the trend line or take a short if it breaks and pick it up again at 167 area.

Reading around it apparently they have just released very good update but at the same time a bank has gone into administration and is off loading circa 43m shares which has most likely caused the drop.

Daily chart
screencast.com/t/3RhVxvlrt

Weekly chart
screencast.com/t/1ZGuGiG6

Thoughts welcome and as they say DYOR

Tom aka MD