Risk of a significant sell off in commodities
Page 3 of 8
Technical Recommendation: Hold
(Click here for IVC fundamental research and company information)
IVC was last reviewed at the end of November. At the time it was trading at the lower limits of its 12-month range and prospects were encouraging. It was noted 'there are a limited number of low-risk opportunities in the market at this stage, and IVC is one of them'
An Accumulate rating with a $7.73 target was put forward.
The stock pushed through that target last week, breaking above key resistance. The break was on strong volume and momentum is positive. This suggests that the consolidation phase that has been in progress since late last year is complete and the next phase of the broad 2008 uptrend is beginning.
Of course, there have been a large number of failed topside breaks in recent times, and this could be another example. But IVC's chart pattern is more constructive than most and unless last week's gains are quickly erased, the stock remains positive.
The medium-term target is $8.85
Hold for now. Accumulate on a break above $7.89, with a stop-loss at $7.60.
(click image to enlarge)