By Alan Saunders
Utilico Emerging Markets Daily chart

Trade - BUY
Issue - UTILICO EMERG MRKTS (UEM)
App. Entry Price – 187.7p (We suggest a slippage allowance of no more than 1% from this price)
Initial Stop - Close - 176 ( - 6.2%)p, wide - N/Ap
Target Price - 218p ( + 16.1%)
Reason - UEM has broken above the 183p resistance level created by the twin Oct’07 and Jan’08 tops and it has confirmed its breakout by forming a new low above the 183p level. Increased buyer demand and limited supply have allowed this breakout and the preceding rally up form the area of the 2 year consolidation range (Jan’11 to Jan’13) and also allowed the stock to swing into an Uptrend as its new dominant trend. The stock is now up into virgin price territory with no obvious resistance immediately overhead so it should now make progress towards reaching the 218p level.
Pros: In Uptrend as its new dominant trend and broken above the 183p level resistance, strong buyer demand and limited supply (selling), up into virgin price territory, should move up to test the 218p level.
Cons: If buyer demand should slow at the same time as sellin increased then the price could, again, make a quick vist to the 176p area.
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