We hit the jackpot with this one, so it was a bit silly of me to say that traders might want to think about taking some money off the table on Friday morning—silly because the Montalva solar energy project deal that Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) has done with PREPA (Puerto Rico Electric Power Authority) is going to end up being worth about C$10 a share, and I've heard it said that it could be a $17 stock. The deal now moves on to final approval by the Puerto Rico Energy Bureau (PREB) and the Puerto Rico Financial Oversight and Management Board (FOMB). This process is expected to last two to three weeks (from now) and should be a mere formality, a rubber stamp job.
We bought the stock back at the perfect entry point 2 weeks ago as it completed a bull Flag, since which time it has accelerated into a vertical ramp on news of the deal being clinched, as you will see on the latest 6-month chart shown above. With this deal being worth approximately C$10 per share it is clear that the stock is probably on its way to this level, however, that said, we can expect to see some jitters and profit taking in the days leading up to the final approval, so we will keep an eye on it and "play it by ear" as this time approaches. Since it is already super critically overbought on its RSI indicator after Friday's big jump, we can expect it to hit some profit taking "air pockets" from now on, and anyone who wants in or wants to add to positions should do so on any larger intraday dips, but as the date of final approval approaches in a couple of weeks we may look to take profits.
Greenbriar Capital website.
Greenbriar Capital Corp, GRB.V, GEBRF on OTC, closed at C$2.98, $2.15 on 29th May 2020.
Originally posted on CliveMaund.com at 1.15 pm EDT on 31st May 2020.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.[NLINSERT]
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