The market looks a bit tired right now. I would expect some sideways action or possibly a 4-6% pullback from the current area to relieve overbought readings. Then a break higher above resistance to have a sustainable intermediate term market rally. Below is the support area I would expect the S&P 500 to pull back to.
CEN.TO Toronto, or (CENJF) US symbol, is a current holding of ours. They are an oil exploration company with resources off the coast of Thailand. This is one of the fastest growing companies that I have seen in the past 20 years. We originally bought in the 16.00 area and repurchased again around the 20.00 area. Seventy percent of the stock is held by four insiders, making the float available to the public at about 35 million shares. I believe the company will be purchased within the next 12 months at a premium to today's prices. Below is a weekly chart of CEN.TO.
Bottom Line: The markets need some side ways to a small pullback, then a move above resistance to have a better chance of an intermediate market rally. CEN has come a long way, but is still a cheap stock comparing its production and future resources, they should be an attractive acquisition for a larger company. Thank you for stopping by.
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