Friday, 12 January 2018
Gerdau S.A (NYSE: GCB): 12 January 2018, Friday, 12.26am Singapore Time
Gerdau S.A (NYSE: GGB):
12 January 2018, Friday, 12.26am Singapore Time
(Click on Technical Chart above to Enlarge)
Attached is the technicals for Gerdau S.A (NYSE: GGB), a steel and iron commodity stock that is listed in the US Market (NYSE). Fundamentally, the projected EPS for this year, next year and the next 5 years are highly positive-biased. Gerdau is also able to generate positive sales despite worldwide commodities' winter of the past 5 years. Now that commodities' winter is over, this stock will soar and roar impulsively. The performance trend is as attached too.
The volume flow illustrates smart monies relentlessly buying up the stock and holding the stock each time after they bought up. This was then followed by large scale consolidation to further re-accumulate. After a disruptive volume absorption in the market (technical blue box), an impulsive wave of buy-ups followed in end of 2017 and the stock proceeded to break up in January 2018, in sync with my live fore-warnings of an end to commodities' doldrums.
Gerdau has also executed a large inverse shoulder-head-shoulder re-accumulation. The volume indicating liquidity is healthy and the SMAs are healthy. The healthy trend is your positive best friend. This is in tune with my forewarned Emerging Markets' outperformance to come in 2018 and the Commodity Sector theme of cyclic rotation that is coming. Important in-depth cross reference to commodities' technical analysis is as attached below too (Reuters-Jefferies CRB Index).
The Donovan Norfolk Technical Rating: