Here's an update on our last post on First Global Data (FGD.V); to say the least the last few days have been quite active. The stock broke its first level of support (S1, 60) on Monday and has tested (S2, 49) yesterday. While it is now approaching oversold territory, the MACD is still calling a sell signal. However, the magnitude does not seem as strong as the previous cycle.
The daily forecast for the week reveals that FGD.V closed yesterday between the Lo 80 to Lo 90 confidence interval. Moreover, the volume from yesterday (3,8M) was significant - it is in the top 25% of the last three months which suggest a potential outlier performance.
In addition, there is a .65 correlation, between FGD,V and the S&P/TSX Venture Composite Index in the last month (April to May 5th). We consider this to be strong (1 is perfect) since this period corresponds with earning season.
FGD.V is due to release Q1 numbers before May 30th. As mentioned before they recently completed a private placement with of $10M at ,70 cents with warrants at ,90 cents. We will continue to monitor this situation but the risk reward ratio of this price point is getting very interesting.
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