Wow! What a move on the Amaya Gaming (AYA.TO) stock today! Amaya offered $4.9 Billion cash.
We can see the stock started to break above resistance in late May but the SCTR fired off an early warning signal in early May when the stock was still around $8.
I think they were holding aces! Usually the buyer does not soar on the news of spending almost $5 Billion. Google Finance shows the market cap of Amaya at $1.87 Billion after - yes after the 40% pop in the stock!
I think making a purchase at 5 times your market cap (around $1 Billion before today) would be defined as going All In !
Good trading,
Greg Schnell, CMT
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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