Hatten Land (“Hatten”) has been trading in a tight range $0.192 – 0.210 for the past two months. Recently, there seems to be a pick up in the volume traded for the past two days.
Hatten’s chart looks positive on several fronts.
Based on Chart 1 below, odds seem high that Hatten may be poised to breach above $0.210 in the next couple of months. This is because
a) The recent price increase (albeit mild price increase) is accompanied with volume. On the days which Hatten falls, it is accompanied with lower than average volume;
b) A potential double bottom formation seems to be in the midst of formation with the neckline at $0.210. Indicators such as RSI and MACD have strengthened.
c) Notwithstanding Hatten’s sideways trading for the past two months, its OBV has been strengthening which may be indicative of smart money accumulating the stock;
d) All the exponential moving averages (“EMAs”) have either stopped declining or have started to rise. In fact, 20D EMA has already turned higher.
Near term supports: $0.200 / 0.198 / 0.196
Near term resistances: $0.210 / 0.230 / 0.240
Chart 1: Looks positive
Source: Chartnexus as of 26 Sep 17
On the fundamental side…
With reference to Figure 1 below, analysts seem to be positive on Hatten with an estimated average target price of around $0.420. This signifies a more than 100% potential capital upside.
Figure 1: Analysts’ average target price signifies >100% potential upside!
Source: Bloomberg as of 27 Sep 17
This write-up revolves around Hatten’s chart as its chart has caught my attention. This is because $0.210 is arguably an area of strong resistance as it is the confluence of several resistance points formed by 100D, 200D EMA, historical resistance and a downwards trend line formed since Feb 2017. If Hatten manages to breach $0.210 with volume and on a sustained basis, the first measured technical target is around $0.230. It may even head to the next resistance level of around $0.255 – 0.265. Nevertheless, it is noteworthy that a sustained break below $0.180 with volume is bearish for the chart. On balance, given the above chart analysis, odds are higher for Hatten for a potential breach above $0.210 in the next few months.
For fundamental research, readers should refer to the various analysts’ reports on Hatten.
P.S: I am vested in Hatten.
Please refer to the disclaimer HERE