PAL finished at 1.85 today as we can see. There is a key trend line (1.20 - 1.79 - 1.85) on the 3month chart that PAL finished on today after a 66% run up in pps over the past 2 months. It looks like PAL is running out of steam here and getting closer to the CC and earnings, there is no reason to expect this rally to continue without a catalyst to drive the price up. Pd is also hitting a major barrier at the 770-775 level it failed to break through again.
Therefore I expect a retracement to start occurring tomorrow given no material news being released which could last for a week, i.e. going into the 22nd.
On the other hand it is quite possible that news could propel PAL higher tomorrow, but that is a variable outside of our control so we cannot rely upon that to happen. The last update concerning the mine expansion etc propelled us to the 1.98 level and that affect is wearing off and we should given no news return back to where the pps was when that news was released.
What is your opinion on SWC earnings?
How are they going to paint 2013? Or even Q1 2013?
Both SWC and PAL has zigzag uptrend in last 2-3 month period with PAL relatively higher volume while SWC not so with volume.