Pacific Andes is unable to break above the previous uptrend support turned resistance. PacAndes is currently trading below 20D, 50D and 200D MA. Critical support is $0.31 which is the 61.8% Fibonacci Support and also the neckline of a Head and Shoulders trend reversal chart pattern. Breaking the neckline may send PacAndes to about $0.25 level.
Pacific Andes is currently trading in A Symmetrical Triangle for a short term. Base on the chart pattern, it looks like Pacific Andes is going to breakout soon. Long term chart is still on an up trend. Fundamentally, Pacific Andes does not have any “wow” factory base on the financial result. Current PE of 16.1 is at its fair value but considered high compared to the past 3 years average PE of 9.1. Nothing fantastic financially base on FY2009 result:
$0.305 is a significant level to watch. This is also a 61.8% Fibonacci Retracement Level and all three moving averages (MA). Breaking out from this Symmetrical Triangle will send Pacific Andes to either $0.35 (78.6% FR) 0r $0.24 (38.2% FR).
Things to watch out for:
