TSE Update June 6

tse

The TSE index, despite 400 point down days alternating with 300 point updays, has in the main stayed roughly at the same or slightly higher level where it has been for a few weeks now. This range of 10250 to 10750 corresponds well with a fourth wave of previous degree. Furthermore we are at the 38.2+ % retracement level which is a reasonable first target. The actual count is more elusive but could be a 5-wave c, in which case just one more minor upmove would be required to complete the pattern. Again looking at certain stocks such as RY and the insurers, we are at such a high level that it is not unreasonable to expect a sizable pullback from these levels.

PEY.UN Jun 4

peyun4

Our target for this stock , on Feb 27th , was between $10 and $13, we have reached $11.25 or so, up about 60% from that point. Higher levels towards $13 are still possible as that is the highest point in the triangle. Given that oil itself has a very good upmove I would caution against overstaying your welcome from here on, read sell.