First Tidal Acquisition Corp T.AAA

Primary Symbol: V.AAA.P

Industrials Conglomerates

First Tidal Acquisition Corp. is a Canada-based capital pool company. The Company's principal business is the identification and evaluation of a qualifying transaction and once identified or evaluated, to negotiate an acquisition or participation in a business subject to receipt of shareholder approval, if required, and acceptance by regulatory authorities. The Company has not generated revenues from operations.

TSXV:AAA.P - Post by User

First Tidal Acquisition Corp

Bullboard Posts

Post by TAPickson Oct 05, 2010 10:17am

368 Views

Post# 17529233

Bullish Reversal Hammer

With all the talk about potash and China's high interest in it these days along with offers from BHP Billiton Plc, we've seen nice runs in that section as rumors go around about as to who will be taking over whom. This has caused Allana Potash Corp to raise with the others as well. I must say, from July to September it raised 65.5% and has pulled back from its highs of
.53 to close yesterday at
.405, a drop of 23.5% in almost 3 weeks.

If you look at the chart below there's a series of trend lines. The orange one is the long term trend for Allana. The white upwards trend lines is the short term. Now add that thick white line (the 200SMA) and that's exactly where the priced closed yesterday. On the 200 SMA line. Many of you who have been reading my blogs and post for a while know how I feel about the 200SMA. Its in my mind, *THE* most powerful indicator there is to watch. Just look at Allana and see how the 200SMA was it's pivot point for the last 4 months...

On many of my plays I like to see the indicators in an oversold condition. Allana fits that profile. I also like to see the price near or just below a trend line. It is way past that on the short term trend line, but just slightly below its long term trend line. Volume has been building for the last week and looks like accumulation here.

So just these conditions would tempt me to buy in with potential of approximately 14% (the width of a trend line on the long term trend).

But these is not these are not the reasons why I'm interested in this chart this morning... It is the candle it posted yesterday. A hammer. A hammer after 3 consecutive down days, below my trend line *AND* closing exactly on the 200SMA line. Now that is a nice setup. There's some good reading you can find on StockCharts on hammers, what they are and how to play them. Check it out here. Read that whole section, its all about Bullish Reversal candle stick patterns. A Bullish Reversal Hammer has triggered the last 3 pops on Allana.

So the play would be to go long as the price moves above the top of yesterday's candle (so entry at
.41), stop loss at the bottom of yesterday's candle (at
.39). First target would be the resistance line at
.45 for gains of 9.7%, followed by the center long term trend line at
.48 (for gains of 17%). Blue sky target would be to re-challenge the resistance line at
.53 for gains of 29.2%.

Now for the bad news. I'm also seeing a Head & Shoulder formation that started early September. Yesterday's close was just at the neck line and it the price of Allana does not move up today to invalidate the formation, this would become a good short play with next support around
.32. So be careful with this play and keep your stop loss tight.

See chart here.