One of the few stocks that has been grabbing my attention for the past week has been Oriental Peninsula Resources or ORE.  It was last spotted creating a base around 1.50 to 1.62 before it started moving higher.  It was able to close at the high of 1.90 as of this writing.

The pattern that ORE is making started roughly around April 2008.  From the 2 peso level, it has descended to as low as 50 centavos before climbing back.  Trading from that time up to January 2010 has been spotty and/or uninteresting…until February.

We saw a rapid run in February starting from 80 centavos up to 2.02.  From the retest of that level, ORE has retraced back down to as low as 1.48.  Since that time, it has slowly built its base around that area.  It started to climb from that base on tax day, Apr. 15.  Right now, it’s just a stone’s throw away from retesting 2.02.

All the indicators are positive.  The moving averages are supporting the price of ORE and they are in the bullish setup.  The MACD has retested the zero line but has also pushed itself above that area giving us a bullish sentiment.  In other words, everything is looking good for the stock.

Should the trend continue, I will repeat the figures written in our hitlist on the right side of our site.  The resistance is at 2.02, so once this is surpassed, a breakout buy is placed at 2.04, with a minimum upside of 3.70.  Should things go wrong, cut your losses at 2.00.

It’s good that we were able to spot this before it moved.  At least you now have an opportunity to gain a potential 82% on your profits.  Please note that prices won’t move directly all the way to the target and there will be corrections in between.

Recommendation: Breakout buy
Buy: 2.04
Target: 3.70
Cut loss: 2.00