Thursday, February 21, 2013

Earnings Report Trade - Kreuz

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Earnings Report Trade - Kreuz

1. Kreuz (Offshore services)
Kreuz had recently announced contract wins totally US$15.5 million in January resulting in a considerable surge in its share prices. Prices have already risen a whopping 100% since its 2 year low in May 2012. Traders have turned considerably bullish lately again on the nearing of its earnings report tomorrow 21 Feb 2013.
  • Large white candlestick last week that has broken a 2 year major resistance line on some trading volume.
  • MACD - is high in the positive with some wavering though.
  • RSI (25w) - is recapturing 70% high since Oct 2012.
  • Short term trade TP - $0.54 (11% from current levels) expected in 1-2 weeks. On the back of anticipated strong earnings, if reported tomorrow, will give the bulls more reason for higher prices. Of course, the risk here is that the company reports lower than expected earnings and prices fall through the support. If nothing drastic, prices could still be supported by $0.47 support levels and it does seem like a decent risk-reward trade.


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