Marine Harvest Group 19.02.2008

Today we take a look at Marine Harvest Group - MHG. The stock has taken a beating lately with a so far low (latest months) last Friday when the Q4 results was presented. Intraday Friday the stock was down to 2.39 NOK but closed at 2.72 NOK. Today the stock price ended at 2.72 NOK after being as high as 2.88 NOK. It has turned out that John Fredriksen has bought a large amount om shares and are now controlling about 30% of the company. Looking at the chart we see that a resistance level at about 2,77 NOK has been established. This level has been tested and broken the two last days without any successful closing breakout. We also see a nice falling trend channel in the price chart. Looking at the RSI chart we see a rising trend channel, meaning that we have a divergence between price and RSI. This is a very positive signal and could lead to a breakout from the 2.77 NOK level the days to come. RSI is also low in its channel leaving room for a rise in stock price. On the downside there is also room for a small fall in stock price according to the RSI trend channel. Therefore the potential fall at this stage is small compared to the potential upside. If the resistance level at 2.77 NOK is broken, buy on possible pullbacks down to 2.77 NOK and set your stoploss according to your trading plan - probably just below 2.77 NOK. If you want higher risk buy at todays levels but keep a tight stoploss due to higher risk.